PNC to Repay $7.6B in Bailout Funds

""PNC Financial Services Group"":https://www.pnc.com said Tuesday that the company has reached an agreement with banking regulators and the U.S. Treasury to pay back the $7.6 billion it received under the Troubled Asset Relief Program (TARP).

To fund the repayment, the Pittsburgh-based company has priced a $3 billion offering of 55.6 million shares of its common stock at $54.00 per share. Subject to market conditions, PNC said it also plans to offer senior notes in an[IMAGE] [COLUMN_BREAK]

aggregate amount of $1.5 billion to $2 billion, and will sell off its investment processing and servicing business as part of the agreement.

On the same day, PNC signed a definitive agreement to sell PNC Global Investment Servicing to ""Bank of New York Mellon"":http://www.bnymellon.com for $2.3 billion in cash. The transaction is expected to close in the third quarter of 2010.

The Treasury issued a statement Wednesday saying, ""We are pleased that PNC Financial Services is moving ahead with plans to pay the taxpayers back in full. Government policies have helped restore our financial system and economy to health, giving banks such as PNC an opportunity to replace Treasury investments with private capital and reducing the burden of debt on future generations.”

According to Treasury officials, once PNC's repayment is received, they will have recovered nearly 70 percent of taxpayer investments in the banking system. Of the $376 billion in TARP funds that have been disbursed since 2008, the Treasury says $203 billion is currently outstanding, including bank and non-bank investments.