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PPL Capital prices $1B in exchangeable senior notes
Stacy Wescoe//November 21, 2025//
Listen to this articlePPL Capital Funding Inc. a wholly owned subsidiary of Allentown’s PPL Corporation, has announced the pricing of $1 billion aggregate principal amount of its 3% Exchangeable Senior Notes due 2030.
The company expects to take in $988.8 million in net proceeds.
PPL said it intends to use the net proceeds from the offering to repay short-term debt and for general corporate purposes.
According to a press release, the offering will be made in a private placement to persons reasonably believed to be qualified institutional buyers.
PPL Capital Funding also granted the initial purchasers of the notes an option to purchase, up to an additional $150 million aggregate principal amount of notes.
The sale of the notes to the initial purchasers is expected to settle on Nov. 24 subject to customary closing conditions.
The notes will be senior, unsecured obligations of PPL Capital Funding and will be fully and unconditionally guaranteed on a senior, unsecured basis by PPL Corporation. The notes will bear interest at a rate of 3% per year, payable on June 1 and Dec.1 of each year, beginning on June 1, 2026. The notes will mature on Dec. 1, 2030, unless earlier exchanged, redeemed or repurchased.
The notes will be exchangeable at an initial exchange rate of 23.4412 shares of PPL Corporation’s common stock per $1,000 principal amount of notes, which it said is equivalent to an initial exchange price of approximately $42.66 per share of common stock, and represents an exchange premium of approximately 20% to the last reported sale price of $35.55 per share of common stock on the New York Stock Exchange on Nov. 19.
PPL Capital Funding said it may not redeem the notes prior to Dec. 5, 2028. PPL Capital Funding may redeem for cash all or any portion of the notes on or after that date if the last reported sale price of the common stock has been at least 130% of the exchange price then in effect for at least 20 trading days during any 30 consecutive trading day period.
