PPL Energy Supply convertibles upsized to $350 million, yield 2.625%, up 29.25%

New York, May 15 - PPL Corp.'s subsidiary PPL Energy Supply, LLC priced $350 million of convertible senior notes to yield 2.625% with a conversion price of $49.725 - equivalent to a 29.25% initial conversion premium.

The deal was increased from a planned $300 million in size and came towards the rich end of talk which had put the yield at 2.5 to 3.0% with a 27.5% to 32.5% initial conversion premium.

Merrill Lynch & Co., Morgan Stanley and Wachovia Securities, Inc. are joint lead managers of the Rule 144A deal.

There is a $50 million greenshoe.

The Allentown, Pa. energy company will use proceeds to repurchase commercial paper and for general corporate purposes.

Conversion of the notes is subject to a hurdle that requires the stock to trade above $59.67.

The notes are callable at par beginning May 20, 2008 and putable on May 15, 2008, 2013 and 2018.

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