By Andrea Heisinger
New York, Sept. 14 - PNC Funding Corp. sold $1.25 billion of 2.7% five-year senior notes on Wednesday to yield Treasuries plus 185 basis points, a source away from the trade said.
The paper was priced at the tight end of guidance, which was in the 190 bps area, plus or minus 5 bps.
The notes (A3/A/A+) were sold at 99.879 to yield 2.726%.
Bookrunners were Bank of America Merrill Lynch and J.P. Morgan Securities LLC. PNC Capital Markets LLC assisted on the sale.
Proceeds will be used for general corporate purposes, including funding the pending RBC Bank USA acquisition.
The notes are guaranteed by PNC Financial Services Group, Inc.
PNC Funding last priced paper in a $750 million offering of 10-year notes on Aug. 4, 2010.
The subsidiary of financial services company PNC Holding, LLC is based in Pittsburgh.
| Issuer: | PNC Funding Corp.
|
| Guarantor: | PNC Financial Services Group, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Maturity: | Sept. 19, 2016
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Co-manager: | PNC Capital Markets LLC
|
| Coupon: | 2.7%
|
| Price: | 99.879
|
| Yield: | 2.726%
|
| Spread: | Treasuries plus 185 bps
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A+
|
| Price talk: | 190 bps area, plus or minus 5 bps
|
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