PNC Financial Services Group Inc: Key Developments
PNC Financial Services Prices $3.0 Billion Common Equity Offering
February 3, 2010 |
| PNC Financial Services announced that it priced a $3.0 billion offering of 55.6 million shares of its common stock at $54.00 per share. The underwriters will have a 30-day option to purchase up to an additional 8.3 million shares of common stock from the Company to cover over-allotments, if any. The closing is expected to occur on or about February 8, 2010. As previously announced, PNC reached an agreement with its banking regulators and the U.S. Treasury permitting it to redeem the $7.6 billion of preferred shares held by the U.S. Treasury under the Troubled Asset Relief Program (TARP) Capital Purchase Program. The common stock offering and the previously announced plan to sell PNC Global Investment Servicing, Inc. are part of the agreement. Subject to market conditions, PNC plans to offer senior notes in an aggregate amount of $1.5 billion to $2.0 billion. The debt offering is intended to provide additional parent company liquidity in connection with the redemption of the TARP preferred shares, which will follow the debt offering and is anticipated to occur during February 2010. Any offers with respect to the proposed debt offering will be made only by a separate prospectus. J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated acted as joint bookrunning managers for the common stock offering. |
PNC Financial Services To Sell PNC Global Investment Servicing Inc.
February 2, 2010 |
| PNC Financial Services announced that it has signed a definitive agreement to sell PNC Global Investment Servicing Inc., a provider of processing, technology and business intelligence services to asset managers, broker-dealers, and financial advisors worldwide, to BNY Mellon. for $2.3 billion in cash. Upon completion of the sale, PNC expects to report an after-tax gain of approximately $.5 billion and an increase in Tier 1 common capital of approximately $1.6 billion after the release of capital of $1.1 billion primarily related to goodwill and other intangible assets. The transaction is estimated to be completed in the third quarter of 2010. Citigroup Global Markets Inc. and Morgan Stanley & Co. Incorporated acted as financial advisers and Wachtell, Lipton, Rosen & Katz acted as legal adviser to PNC. |
The Bank of New York Mellon Corporation In Talks To Buy $2.5 Billion The PNC Financial Services Group, Inc.'s Unit-Reuters
January 28, 2010 |
| Reuters reported that The Bank of New York Mellon Corporation is in late-stage talks to buy a The PNC Financial Services Group, Inc.'s business for about $2.5 billion. PNC has been shopping its PNC Global Investment Servicing business, which provides back-office processing, for several months. A deal, which could come as soon as next week, could help the bank pay back its $7.6 billion in bank bailout funds. |
PNC Financial Services Declares Dividend Of $0.10 On Common Stock
January 7, 2010 |
| PNC Financial Services announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share on the common stock. The dividend is payable January 24, 2010 to shareholders of record at the close of business January 15, 2010. The Board also declared a quarterly cash dividend on the following preferred stocks; Series A and B: a dividend of $0.45 per share will be payable March 10, 2010 to shareholders of record at the close of business February 16, 2010. Series C: a dividend of $0.40 per share will be payable April 1, 2010 to shareholders of record at the close of business March 5, 2010. Series D: a dividend of $0.45 per share will be payable April 1, 2010 to shareholders of record at the close of business March 5, 2010. Series L: a dividend of $2,468.75 per share ($.6171875 per each depositary share, 4,000 of which represent one share of Series L preferred stock), payable on February 1, 2010 to shareholders of record as of the close of business January 15, 2010. Series N: a dividend of $1,250.00 per share, payable on Feb. 16, 2010 to shareholders of record as of the close of business Jan. 29, 2010. The Series N preferred stock is held by the U.S. Department of Treasury under the Troubled Asset Relief Program. To date, the board of directors has authorized or paid a total of $426.3 million in dividends to the Treasury. |
Fed Asks U.S. Banks Including The PNC Financial Services Group, Inc. To Submit TARP Repayment Plans-Reuters
November 24, 2009 |
| Reuters reported that the U.S. Federal Reserve this month asked banks that were part of its 'stress tests' to submit plans to repay government money, if they have not already repaid it. Many U.S. banks are eager to repay money borrowed under the government's $700 billion Troubled Asset Relief Program. Participation in the program comes with limitations on pay, dividend payouts and share repurchases. Nine banks may soon be allowed to repay money borrowed under TARP, if they have been able to raise common equity recently and if they show they would continue to exceed capital buffers after redemptions. The stress tested banks that remain in TARP include Bank of America Corporation, Citigroup Inc., Fifth Third Bancorp, GMAC, KeyCorp, PNC Financial Services, Regions Financial Corporation, SunTrust Banks, Inc. and Wells Fargo & Co. |
PNC Financial Services Eying Capmark Financial Group Inc.'s Servicing Unit-Reuters
November 13, 2009 |
| Reuters reported that a unit of PNC Financial Services is considering a bid for Capmark Financial Group Inc.'s mortgage servicing portfolio. |
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