By Andrea Heisinger
New York, Feb. 3 - PNC Funding Corp. priced $2 billion of senior notes (A3/A/A+) in two tranches on Wednesday, a market source away from the deal said.
This was the maximum amount the company planned to offer. It had previously announced in a press release that the size would be between $1.5 billion and $2 billion.
The $1 billion tranche of 3.625% five-year notes priced at 99.9 to yield 3.647%, or Treasuries plus 125 basis points.
A $1 billion tranche of 5.125% 10-year notes priced at 99.861 to yield 5.143%, or 145 bps over Treasuries.
Both tranches are non-callable.
The sale is guaranteed by parent company PNC Financial Services Group, Inc.
J.P. Morgan Securities Inc. and Morgan Stanley & Co. were bookrunners. PNC Capital Markets was the co-manager.
Proceeds, along with those from a $3 billion sale of common stock, will provide liquidity to the company in connection with its redemption of $7.6 billion in Troubled Asset Relief Program preferred shares following the debt offering.
The financial services company is based in Pittsburgh.
| Issuer: | PNC Funding Corp.
|
| Issue: | Senior notes
|
| Guarantor: | PNC Financial Services Group, Inc.
|
| Amount: | $2 billion
|
| Bookrunners: | J.P. Morgan Securities Inc., Morgan Stanley & Co.
|
| Co-manager: | PNC Capital Markets
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 8
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 8, 2015
|
| Coupon: | 3.625%
|
| Price: | 99.9
|
| Yield: | 3.647%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Non-callable
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 8, 2020
|
| Coupon: | 5.125%
|
| Price: | 99.861
|
| Yield: | 5.143%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Non-callable
|
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