#United States #PPL Corporation #Allentown #Exchangeable Notes #Capital Funding

PPL Capital Funding Launches $1 Billion Exchangeable Senior Notes Offering

PPL Capital Funding, Inc., a wholly-owned subsidiary of PPL Corporation, has recently announced a significant milestone in its financing strategy by pricing an offering of $1 billion of its 3.000% Exchangeable Senior Notes due in 2030. This initiative aims to provide the company with enhanced liquidity and further bolster its financial positioning.

The offering is structured as a private placement, open to qualified institutional buyers under Rule 144A of the Securities Act of 1933. Notably, the offering includes an additional option for initial purchasers to acquire up to $150 million in principal amount of notes within a specified 13-day period following the initial issuance date. This flexibility is expected to ensure robust participation from investors.

The anticipated settlement date for the sale is November 24, 2025, pending customary closing conditions. After accounting for the purchasers' discount but before deducting estimated offering expenses, PPL Capital Funding expects the net proceeds to approximate $988.8 million.

The Exchangeable Senior Notes represent senior, unsecured obligations of PPL Capital Funding and are guaranteed on a similar basis by PPL Corporation. With an annual interest rate set at 3.000%, interest payments will be made semi-annually starting from June 1, 2026. The maturity date for these notes is set for December 1, 2030, unless they are exchanged, redeemed, or repurchased earlier.

Importantly, the notes are exchangeable at an initial rate equivalent to 23.4412 shares of PPL Corporation’s common stock per $1,000 principal amount of notes, resulting in an initial exchange price of roughly $42.66 per share. This represents a 20% premium relative to the last reported share price of $35.55 on the New York Stock Exchange as of November 19, 2025.

Noteholders will have the option to exchange their notes based on specific conditions until September 1, 2030, after which the process can occur at any time leading up to the maturity date.

While PPL Capital Funding cannot redeem the notes until December 5, 2028, it retains the option to redeem for cash the entirety or a portion of the notes assuming certain criteria are met regarding the underlying stock price.

In the event of significant corporate changes, noteholders can require PPL Capital Funding to repurchase either some or all of their notes at a defined repurchase price, ensuring a degree of investor protection.

The net proceeds acquired through this financing will primarily be utilized to repay short-term debts and for general corporate purposes. This move reflects PPL Capital Funding's strategic vision for maintaining financial health and flexibility as it navigates the complexities of the energy market.

PPL Corporation defines itself as a leader in the U.S. energy sector, servicing over 3.6 million customers with a focus on reliable electricity and natural gas delivery. The firm is actively engaged in enhancing its infrastructure through smarter, more resilient power grids while advancing sustainable energy solutions.

It is worth noting that this announcement does not constitute an offer to sell securities nor any solicitation to buy. Additionally, the notes, alongside their corresponding guarantees and shares upon exchange, will not be registered under applicable laws, limiting their sale in the U.S. without proper exemptions.

This move by PPL Capital Funding represents a proactive approach to securing funds while positioning itself favorably for future opportunities and challenges in the ever-evolving energy landscape.