PNC floats $250 million of subordinated debt.

PNC Bank Corp. on Wednesday issued $250 million of subordinated debt.

The 10-year issue was priced to yield 6.16%, 70 basis points over the 10-year U.S. Treasury note.

Smith Barney Shearson was lead manager, its first mandate for a straight bank debt issue in three years, according to Securities Data Co.

Smith Barney, a unit of Primerica Corp., has been raising its profile as an underwriter since recently acquiring the retail brokerage operation of Shearson Lehman Brothers.

Smith Barney and PNC officials declined to comment on the bond issue.

Pending Purchases

PNC has two acquisitions pending.

It is buying Sears, Roebuck and Co.'s mortgage operation for $328 million in cash. And it is buying First Eastern Corp. of Wilkes-Barre, Pa., for more than $300 million.

The bank had a 12.6% total capital ratio at the end of June.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER