Summary
PNC Financial Services Group, Inc. (PNC) announced on April 10, 2012, that it has initiated the redemption of its outstanding National City Capital Trust III trust preferred securities. This action involves the redemption of $500,000,000 in trust preferred securities, which carry a current distribution rate of 6.625% and were scheduled to mature on May 25, 2047. The redemption is set to occur on May 25, 2012, at a price of $25 per security, plus any accrued and unpaid distributions up to the redemption date. This move indicates PNC's proactive management of its capital structure, potentially aiming to reduce financing costs or simplify its outstanding debt and equity-like instruments.
Key Highlights
- 1PNC announced the redemption of $500 million in National City Capital Trust III trust preferred securities.
- 2The redemption is scheduled for May 25, 2012.
- 3The trust preferred securities have a coupon rate of 6.625%.
- 4The original maturity date for these securities was May 25, 2047.
- 5The redemption price will be $25 per security plus accrued distributions.
- 6This action reflects PNC's capital management strategy.
- 7The redemption is being executed through a notice to the property trustee.