Hunton Andrews Kurth Advises on PPL Capital Funding, Inc.’s Inaugural Offering of $1 Billion 2.875% Exchangeable Senior Notes

Hunton Andrews Kurth LLP advised the initial purchasers in connection with PPL Capital Funding, Inc.’s inaugural offering of $1 billion in aggregate principal amount of equity-linked 2.875% Exchangeable Senior Notes due 2028 (“Notes”), fully and unconditionally guaranteed by PPL Corporation (“PPL”), in a private placement under Rule 144A of the Securities Act of 1933, as amended, to eligible purchasers. The Notes may be exchangeable into shares of PPL’s common stock at an initial exchange rate tied to the price of PPL’s common stock and as further described in the offering memorandum for this offering. This offering represented the first utility holding company to issue an investment grade convertible note product since 2003.     

PPL Capital Funding, Inc. is a wholly owned subsidiary of PPL whose primary business is to provide PPL with financing for its operations. PPL, headquartered in Allentown, Pennsylvania, is a utility holding company that was incorporated in 1994. PPL, through its regulated utility subsidiaries, delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky.

The Hunton Andrews Kurth team included Peter K. O’Brien, Steven C. Friend, Brendan P. Harney, and Reuben H. Pearlman. Robert McNamara and Tim Strother provided tax advice.