Feb 11 (Reuters) - PNC Preferred Funding Trust III, a unit
of PNC Financial Services Group Inc (PNC.N: Quote, Profile, Research), sold on Monday
$375 million of non-cumulative exchangeable perpetual preferred
shares in the 144a private placement market, said market
sources.

The size of the deal was increased from an originally
planned $300 million.

Goldman Sachs was the sole lead manager for the sale.
BORROWER: PNC PREFERRED FUNDING TRUST III
AMT $375 MLN COUPON 8.70 PCT* MATURITY PERPETUAL*
TYPE PERP PFD ISS PRICE 100 FIRST PAY 3/15/2008
MOODY'S A3 YIELD N/A SETTLEMENT 2/19/2008
S&P A-MINUS SPREAD N/A PAY FREQ QUARTERLY
FITCH SINGLE-A NON-CALLABLE 5-YEARS*
*CALLABLE ON 3/15/2013. FIXED UNTIL 3/15/2013. IF NOT CALLED,
COUPON FLOATS/PAYS/RESETS QUARTERLY AT 3-MO LIBOR +522.6 BPS