PNC Financial Services Group Inc. said it reached an agreement with banking regulators and the Treasury Department to repay the U.S. government's $7.6 billion investment made through the Troubled Asset Relief Program.
PNC had remained the largest American commercial banking company to carry government support after larger rivals struck deals last year to exit the program.
The company, which has a big presence in New Jersey and eastern Pennsylvania, said Tuesday that it plans to offer $3 billion of its common stock to help redeem the $7.6 billion of preferred shares owned by the Treasury Department.
That sale and the announcement earlier Tuesday to unload its global investment servicing business to Bank of New York Mellon Corp. are part of PNC's agreement with the government.
Additionally, PNC said it plans to offer senior notes to provide additional liquidity in connection with the redemption.
"With signs of an improving economic environment and stabilizing financial system, we believe now is the appropriate time for us to redeem the preferred shares held by the U.S. Treasury," said Chairman and Chief Executive James E. Rohr.
Last month PNC reported that it swung back into the black in the fourth quarter as it recorded rising revenue and booked a hefty one-time gain related to an acquisition.
