PNC Financial Group Services has tapped the U.S. blue-chip bond market for the second time since a regional banking crisis rattled investors earlier this year.
The Pittsburgh-based bank priced $750 million of fixed-to-floating rate notes due in 2034 on Tuesday, according to a person familiar with the matter, who asked not to be identified as the details are private. The securities yielded 1.73 percentage points over Treasuries, compared with early pricing discussions of 1.95 percentage points, the person added.
PNC's deal is the latest in a
The offerings come as companies rush to raise capital before the cyclical summer slowdown that typically kicks in toward the end of August. PNC last issued in early June, when it raised $3.5 billion of bonds.
For regional banks, there's an incentive to tap investment-grade debt markets while funding costs are relatively low. The extra yield investors demand to hold financial bonds over average blue-chip debt has been declining since April, according to data compiled by Bloomberg.
On Wall Street, focus has also shifted to proposals from U.S. regulators that would require lenders to raise more capital to protect them from market shocks. That could lead to even more issuance, especially from regional banks, as lenders anticipate stricter rules.
Jacobs Engineering Group and Alexander Funding Trust II were also in the market with deals Tuesday.
Representatives for PNC, Jacobs Engineering and Alexander Funding didn't respond to requests for comment.
— With assistance from Brian Smith
