PNC Financial Sells $1.75 Billion of Fixed-, Floating-Rate Bonds

PNC Financial Services Group Inc. (PNC), the second-largest U.S. regional bank, raised $1.75 billion selling fixed- and floating-rate debt.

The lender’s $750 million of 0.8 percent, three-year notes yield 45 basis points more than similar-maturity Treasuries and its $250 million of three-year floating-rate debt pays 31 basis points more than the London interbank offered rate, according to data compiled by Bloomberg. PNC also sold $750 million of 2.95 percent, 10-year securities at 117 basis points.

Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and PNC managed the sale, Bloomberg data show. The three-year debt is expected to be rated A2 by Moody’s Investors Service and the 10-year bonds may be graded A3. Proceeds will be used for general corporate purposes.

PNC reported fourth-quarter earnings last week, with net income climbing to $719 million, or $1.24 a share, from $493 million, or 85 cents, a year earlier.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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