Summary
PNC Financial Services Group, Inc. (PNC) has announced the initiation of a wind-down process for Market Street Funding LLC, a multi-seller asset-backed commercial paper conduit administered by PNC Bank. This decision is part of PNC's strategic initiative to diversify and extend its borrowing base, influenced by ongoing regulatory developments. Market Street Funding, which had $5.9 billion in commercial paper outstanding as of June 30, 2013, will have its commitments and outstanding loans transferred to PNC Bank. PNC Bank will then fund these through its own diversified funding sources. The wind-down is expected to be completed by the end of the fourth quarter of 2013. During this process, all outstanding commercial paper from Market Street Funding will be repaid in full. Associated liquidity facilities and program-level credit enhancement will be terminated upon completion. Importantly, PNC anticipates that this wind-down will not materially impact its financial condition or results of operations. The company affirms its commitment to serving clients' securitization needs through its existing Asset-Backed Finance business.
Key Highlights
- 1PNC is winding down its Market Street Funding LLC, an asset-backed commercial paper conduit.
- 2The wind-down is a strategic move to diversify and extend PNC's borrowing base in response to regulatory changes.
- 3Market Street Funding had $5.9 billion in commercial paper outstanding as of June 30, 2013.
- 4PNC Bank will absorb the commitments and loans of Market Street Funding, utilizing its own diverse funding sources.
- 5The process is expected to conclude by the end of Q4 2013, with all commercial paper being repaid.
- 6PNC does not expect a material impact on its financial condition or results of operations from this wind-down.
- 7PNC will continue to support client securitization needs via its Asset-Backed Finance business.