PPL: Favorable window allowed access, deal went well despite volatility

By Andrea Heisinger

New York, Dec. 14 - The PPL Energy Supply, LLC deal priced on Tuesday was a success despite market conditions, a source from parent company PPL Corp. said on Wednesday.

The $500 million sale of 10-year notes was upsized from $350 million and also priced at the tight end of both whispered and revised guidance. It was the first time PPL Energy Supply tapped the debt market since July 2008.

"The deal went very well given the currently volatile market," senior vice president of finance and treasurer James E. Abel said.

The $500 million deal size allowed the company to obtain all of the funding that PPL Energy will need through 2012 at "a very attractive coupon" of 4.6%, Abel said.

"We've been monitoring the market and found a favorable window," he added.

PPL decided to go with a 10-year maturity because it was desirable to slightly extend the duration of the company's existing borrowings while also being more liquid in terms of investor interest, Abel said.

The electric utility is based in Allentown, Pa.

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