What securities are being redeemed by PNC?

PNC is redeeming $300,000,000 of capital securities issued by the PNC Capital Trust D (PNC Capital Securities) and $6,000,000 of 10.18% MMCapSsm capital securities issued by Yardville Capital Trust III (Yardville Capital Securities).

When will these securities be redeemed?

The redemption date for both the PNC Capital Securities and the Yardville Capital Securities is April 25, 2012.

What is the expected payout for the redeemed securities?

For the PNC Capital Securities, the redemption price is $25 per security plus any accrued and unpaid distributions. For the Yardville Capital Securities, the redemption price is $1,050.90 per $1,000.00 in liquidation amount, plus any accrued and unpaid distributions.

Why might PNC be redeeming these securities?

While the filing doesn't explicitly state the reason, companies typically redeem preferred securities to reduce interest expenses if they can refinance at a lower rate, to eliminate specific debt obligations, or to restructure their capital. The higher coupon rate on the Yardville Capital Securities might be a contributing factor for their redemption.

PNC 8-K SEC Disclosure — Mar 22, 2012

Summary

PNC Financial Services Group, Inc. (PNC) announced on March 22, 2012, its intention to redeem specific trust preferred securities. This action involves the redemption of $300 million in PNC Capital Trust D capital securities and $6 million in Yardville Capital Trust III capital securities, with a redemption date set for April 25, 2012. This move suggests a potential optimization of PNC's capital structure, possibly to reduce interest expenses or refinance at more favorable terms. Investors holding these specific securities should pay close attention to the redemption details, including the redemption price and any accrued distributions, as this will directly impact their final return on investment. The redemption of these securities reflects PNC's active management of its liabilities.

Key Highlights

1PNC is redeeming $300 million of its capital securities issued by PNC Capital Trust D.
2PNC is also redeeming $6 million of 10.18% MMCapSsm capital securities issued by Yardville Capital Trust III.
3The redemption date for both sets of securities is April 25, 2012.
4The PNC Capital Securities have a current distribution rate of 6.125% and a maturity date of December 15, 2033.
5The Yardville Capital Securities have a higher distribution rate of 10.18% and a maturity date of June 8, 2031.
6Redemption prices will include accrued and unpaid distributions up to the redemption date.
7The announcement was made via a press release filed as an exhibit to the 8-K.

PNC FINANCIAL SERVICES GROUP, INC. 8-K Report, Corporate Update (Mar 22, 2012)

Summary

Key Highlights

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