PNC Announces Redemption of Senior Floating Rate Bank Notes Due Dec. 2, 2024 and 5.671% Fixed Rate/Floating Rate Senior Notes Due Oct. 28, 2025

Rhea-AI Summary

PNC Financial Services Group (NYSE: PNC) has announced the redemption of two sets of outstanding notes:

• Senior Floating Rate Bank Notes due Dec. 2, 2024, issued by PNC Bank, National Association, totaling $200,000,000 (CUSIP 69353RFV5), to be redeemed on Nov. 4, 2024.
• 5.671% Fixed Rate/Floating Rate Senior Notes due Oct. 28, 2025, issued by PNC, totaling $1,000,000,000 (CUSIP 693475BH7), to be redeemed on Oct. 28, 2024.

Both redemptions will be at 100% of the principal amount, plus accrued and unpaid interest. Payment will be made through the Depository Trust Company facilities. Interest on both notes will cease to accrue on their respective redemption dates.

Positive

• Early redemption of notes may indicate strong financial position
• Potential reduction in interest expenses for PNC

Negative

• Loss of future interest income for note holders

Insights

Financial Analyst

PNC's decision to redeem $1.2 billion in senior notes ahead of schedule is a strategic move that reflects the bank's strong liquidity position and proactive debt management. By redeeming the $200 million floating rate notes and $1 billion fixed/floating rate notes, PNC is likely taking advantage of favorable market conditions to optimize its capital structure.

This early redemption could potentially lead to interest expense savings, as PNC may be able to refinance at lower rates or reduce its overall debt load. The move also demonstrates the bank's financial flexibility and confidence in its cash flow generation. For investors, this action signals prudent financial management and could positively impact PNC's balance sheet strength.

However, it's important to note that while this redemption may be beneficial in the current interest rate environment, it also reduces the bank's long-term debt cushion. Investors should monitor how PNC plans to maintain its capital adequacy ratios and liquidity position going forward.

PITTSBURGH, Oct. 22, 2024 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today announced the redemption of, on Nov. 4, 2024, all outstanding Senior Floating Rate Bank Notes due Dec. 2, 2024 issued by PNC Bank, National Association in the amount of $200,000,000 (CUSIP 69353RFV5). The securities have an original scheduled maturity date of Dec. 2, 2024. The redemption price will be equal to 100% of the principal amount, plus any accrued and unpaid interest to the redemption date of Nov. 4, 2024. Interest on the Senior Floating Rate Bank Notes will cease to accrue on the redemption date.

PNC will also redeem, on Oct. 28, 2024, all outstanding 5.671% Fixed Rate/Floating Rate Senior Notes due Oct. 28, 2025 issued by PNC in the amount of $1,000,000,000 (CUSIP 693475BH7). The securities have an original scheduled maturity date of Oct. 28, 2025. The redemption price will be equal to 100% of the principal amount, plus any accrued and unpaid interest to the redemption date of Oct. 28, 2024. Interest on the 5.671% Fixed Rate/Floating Rate Senior Notes will cease to accrue on the redemption date.

Payment of the redemption price for the Senior Floating Rate Bank Notes and the 5.671% Fixed Rate/Floating Rate Senior Notes will be made through the facilities of the Depository Trust Company.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

CONTACTS

MEDIA:             
Kristen Pillitteri
(412) 762-4550
media.relations@pnc.com               

INVESTORS:       
Bryan Gill
(412) 768-4143
investor.relations@pnc.com

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SOURCE The PNC Financial Services Group, Inc.

FAQ

What is the redemption amount for PNC's Senior Floating Rate Bank Notes due Dec. 2, 2024?

The redemption amount for PNC's Senior Floating Rate Bank Notes due Dec. 2, 2024 is $200,000,000.

When will PNC redeem the 5.671% Fixed Rate/Floating Rate Senior Notes?

PNC will redeem the 5.671% Fixed Rate/Floating Rate Senior Notes on October 28, 2024.

What is the redemption price for both sets of notes being redeemed by PNC?

The redemption price for both sets of notes is 100% of the principal amount, plus any accrued and unpaid interest to the respective redemption dates.

How will the redemption payment for PNC's notes be made?

The redemption payment for PNC's notes will be made through the facilities of the Depository Trust Company.