By Stephanie N. Rotondo
Phoenix, March 12 - PPL Capital Funding Inc. priced $400 million of 5.9% $25-par 2013 series B junior subordinated notes due April 30, 2073, a market source reported on Tuesday.
The notes will be fully and unconditionally guaranteed by PPL Corp.
BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Interest will be payable on the 30th day of January, April, July and October, beginning July 30. The company can defer payments for up to 10 consecutive years, but in doing so, the interest rate will compound.
The notes become redeemable on or after April 30, 2018 at par plus accrued interest. The company can call the issue prior to that date within 90 days of a tax event, also at par plus accrued interest.
Upon the occurrence of a rating agency event, the notes can also be called prior to the call date, in whole, at 102% of par plus accrued interest. Or, the company can choose to call the issue at any time, at par plus a make-whole premium.
Proceeds will be used to fund capital expenditures and for general corporate purposes.
PPL is an Allentown, Pa.-based energy company.
| Issuer: | PPL Capital Funding Inc.
|
| Guarantor: | PPL Corp.
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| Securities: | 2013 series B junior subordinated notes
|
| Amount: | $400 million
|
| Maturity: | April 30, 2073
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Coupon: | 5.9%
|
| Price: | Par of $25
|
| Yield: | 5.9%
|
| Talk: | Initially 6% to 6.125%, then revised to around 5.9%
|
| Call options: | At par plus accrued interest on or after April 30, 2018, or within 90 days of a tax event; at 102% of par plus accrued interest in the event of a rating agency event; and at par plus a make-whole premium at any time
|
| Pricing date: | March 12
|
| Settlement date: | March 15
|
| Expected listing: | NYSE
|
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