PPL Capital Funding, a wholly‑owned subsidiary of PPL Corporation, announced a private placement of $1 billion in exchangeable senior notes due 2030. The notes are senior, unsecured, and fully guaranteed by PPL Corporation, with semi‑annual interest payable in arrears. Initial purchasers can elect to buy an additional $150 million of notes within 13 days of issuance, giving the company flexibility to raise up to $1.15 billion if demand warrants.
The proceeds will be used to repay short‑term debt and support general corporate purposes, providing liquidity for PPL’s ongoing capital‑investment plan. PPL’s Q3 2025 GAAP earnings of $0.43 per share and ongoing earnings of $0.48 per share—up from $0.29 GAAP and $0.48 ongoing in Q3 2024—illustrate the company’s solid earnings trajectory and the need for a robust balance‑sheet foundation to fund its $20 billion infrastructure program through 2028.
The exchange mechanism allows PPL Capital Funding to pay cash up to the principal amount of the notes exchanged and to deliver cash, shares of PPL common stock, or a combination of both, depending on the election. While the offering documents set the specific exchange price and conversion ratio, the structure gives investors an equity upside while keeping the debt fully secured by PPL’s assets.
The offering is subject to market conditions, and PPL is timing the issuance to take advantage of the current low‑interest‑rate environment. By issuing exchangeable notes, PPL can access capital at a favorable cost while offering investors the potential for equity participation, aligning with its “utility of the future” strategy and the broader goal of modernizing the grid and integrating renewable resources.
PPL aims to maintain an FFO‑to‑debt ratio of 16%‑18% and a holding‑company‑to‑total‑debt ratio below 25%. The new debt will be structured to keep leverage within these targets, reinforcing the company’s commitment to a strong credit profile.
Management emphasized disciplined capital structure management and confidence in meeting its financial targets. President and CEO Vincent Sorgi noted that the financing supports the company’s long‑term growth plan and provides flexibility to pursue strategic investments, while CFO Joe Bergstein highlighted the importance of maintaining liquidity and a healthy debt profile.
While no immediate market‑reaction data is available, analysts expect the financing to strengthen PPL’s balance sheet and support its capital‑investment strategy, reinforcing the company’s position as a leading regulated utility in the United States.
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