PNC to Wind Down Market Street Funding
According to a filing, PNC Financial Services has initiated the process to wind down Market Street Funding, a multi-seller, asset-backed commercial paper conduit administered by PNC Bank.
Market Street Funding funds securitized credit facilities for
PNC’s clients through the issuance of commercial paper. Market Street Funding had $5.9 billion of commercial paper outstanding as of June 30, 2013.
PNC said it has decided to wind down Market Street Funding as part of its overall strategy to diversify and extend its borrowing base, particularly in light of ongoing regulatory developments. PNC will continue to serve clients’ securitization needs through its Asset-Backed Finance business.
As part of the wind down process, the commitments and outstanding loans of Market Street Funding will be assigned to PNC Bank, which will fund these commitments and loans by utilizing its diversified funding sources.
Market Street Funding’s commercial paper will be repaid in full through the wind down process. The wind down of Market Street Funding is expected to be complete by the end of the fourth quarter of 2013. In conjunction with the assignment of commitments and loans the associated liquidity facilities will be terminated, and the program-level credit enhancement currently provided to Market Street Funding will be terminated upon the completion of the wind down.
The wind down is not expected to have a material impact to PNC’s financial condition, or results of operations.