PNC Financial Services Group Inc. released terms for its planned $3 billion stock offering, which the company says it will use to help repay the $7.6 billion it owes the U.S. government.
The company said Wednesday that it will sell at least 55.6 million shares at $54 each, a 1.2% discount from Tuesday's closing price. The stock closed Wednesday at $53.71 a share, down 1.72%.
PNC had said for months that it would try to avoid hurting shareholders as it quit the Troubled Asset Relief Program, which requires the permission of government officials.
As part of PNC's Tarp repayment plan announced Tuesday, the government is requiring the Pittsburgh banking company to close its sale of PNC Global Investment Servicing Inc. to Bank of New York Mellon Corp. Bank of New York Mellon plans to buy the business from PNC for $2.3 billion in cash.
If PNC does not close the transaction, it would be required to raise another $700 million to $1.6 billion, either through selling stock or assets.