PPL Capital Funding $1 billion exchangeable senior notes offering

Davis Polk advised PPL Capital Funding, Inc. on its registered offering of $1 billion aggregate principal amount of 2.875% exchangeable senior notes due 2028, fully and unconditionally guaranteed by PPL Corporation, which included $100 million principal amount of notes pursuant to the exercise in full of the initial purchasers’ option to purchase additional notes. PPL Capital Funding, Inc. and PPL Corporation expect to use the net proceeds from the sale of the notes to repay short-term debt and for general corporate purposes.

PPL Corporation, headquartered in Allentown, Pennsylvania, is a utility holding company that was incorporated in 1994. PPL Corporation, through its regulated utility subsidiaries, delivers electricity to customers in Pennsylvania, Kentucky, Rhode Island and Virginia; delivers natural gas to customers in Kentucky and Rhode Island and generates electricity from power plants in Kentucky and Rhode Island.

The Davis Polk corporate team included partner Michael Kaplan, counsel Jake Tyshow and associate Brad Larkin. The equity derivatives team included partner Mark M. Mendez and associate Stockton Bullitt. Partner Frank J. Azzopardi and associate S. Dream Montgomery provided intellectual property advice. Partner Gregory S. Rowland provided 1940 Act advice. The tax team included partner Lucy W. Farr and associate Danielle Rapaccioli. All members of the Davis Polk team are based in the New York office.