PPL Capital announces pricing and early tender results, with upsizing

By William Gullotti

Buffalo, N.Y., June 29 – PPL Capital Funding Inc. announced the pricing terms after earlier in the day providing the early results and announcing an upsize to the capped part of the tender offer, according to an announcement.

The capped tender offer has been modified to accept all of the notes from the first four acceptance levels of the five series in that offer that were tendered by the early deadline of 5 p.m. ET on June 28.

Any-and-all offer

PPL received the following amounts of tenders for the four series listed below and will accept all notes tendered:

• $117,209,000 of the $400 million outstanding 4.2% senior notes due 2022 (Cusip: 69352PAD5), priced at $1,034.85 using the 1.75% U.S. Treasury due June 15, 2022 plus 45 basis points;

• $155,331,000 of the $400 million outstanding 3.5% senior notes due 2022 (Cusip: 69352PAE3), priced at $1,042.83 using the 0.125% U.S. Treasury due Nov. 30, 2022 plus 30 bps;

• $210.62 million of the $600 million outstanding 3.4% senior notes due 2023 (Cusip: 69352PAF0), priced at $1,055.37 using the 0.125% U.S. Treasury due May 31, 2023 plus 25 bps; and

• $194,342,000 of the $350 million outstanding 3.95% senior notes due 2024 (Cusip: 69352PAK9), priced at $1,089.66 using the 0.25% U.S. Treasury due March 15, 2024 plus 20 bps.

Capped offer

In the capped offer, PPL will accept the following tendered notes:

• All of the $229,189,000 tendered of the $300 million outstanding 4.7% senior notes due 2043 priced at $1,268.47 using the 2.25% U.S. Treasury due May 15, 2041 plus 95 bps;

• All of the $222,876,000 tendered of the $400 million outstanding 5% senior notes due 2044 priced at $1,323.86 using the 2.25% U.S. Treasury due May 15, 2041 plus 95 bps;

• All of the $263,155,000 tendered of the $500 million outstanding 4% senior notes due 2047 priced at $1,183.84 using the 1.875% U.S. Treasury due Feb. 15, 2051 plus 85 bps;

• All of the $568,881,000 tendered of the $1 billion outstanding 4.125% senior notes due 2030 priced at $1,166.77 using the 1.625% U.S. Treasury due May 15, 2031 plus 50 bps; and

• None of the $323,926,000 tendered of the $650 million outstanding 3.1% senior notes due 2026 with pricing that was to be determined using the 0.75% U.S. Treasury due May 31, 2026 plus 35 bps.

With the cap lifted and the offering oversubscribed, no more tenders for the capped notes will be accepted after the early tender deadline.

Details

Pricing includes $30 per $1,000 note early tender payment under each offer if the they tendered by the early deadline. Investors will also receive interest to the relevant settlement date.

The early tender time was also the withdrawal deadline.

Early settlement is expected for June 30.

The offer expires at 11:59 p.m. ET on July 12.

Final settlement is planned for July 14.

Any notes not tendered in the any-and-all offer, any of the notes in those series, will be redeemed on July 15.

J.P. Morgan Securities LLC (212 834-3424, 866 834-4666), Barclays (800 438-3242, 212 528-7581) and Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057) are the lead dealer managers for the tender offers.

BMO Capital Markets Corp., RBC Capital Markets, LLC and Scotia Capital (USA) Inc. are the co-dealer managers.

The information agent and tender agent is D.F. King & Co., Inc. (212 269-5550, 877 283-0323, ppl@dfking.com).

The energy and utility holding company is based in Allentown, Pa. The issuer is a wholly owned subsidiary of PPL Corp.

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