PPL Capital greenshoe lifts 2.875% exchangeable notes to $1 billion

By Mary-Katherine Stinson

Lexington, Ky., Feb. 27 - The underwriters of PPL Capital Funding Inc.'s 2.875% exchangeable senior notes due March 15, 2028 fully exercised their $100 million overallotment option, according to an 8-K filing with the Securities and Exchange Commission.

This brings the total deal size, which closed on Feb. 24, to $1 billion.

As previously reported, the notes will be exchangeable at an initial exchange rate of 29.3432 shares of the guarantor's common stock per $1,000 principal amount of notes equivalent to an initial exchange price of approximately $34.08 per share of common stock, which represents an exchange premium of approximately 22.5%.

The notes are non-callable until March 20, 2026 and then subject to a 130% hurdle.

The notes will be putable at par upon the occurrence of a fundamental change.

The notes will be fully and unconditionally guaranteed by PPL Corp.

Bank of New York Mellon is the trustee.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets, LLC led the sale.

Proceeds will be used to pay short-term debt and for general corporate purposes.

PPL is an Allentown, Pa.-based energy company.

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