PPL completes equity financing for UK electricity distribution acquisition

Source: PPL Corporation

PPL Corporation (NYSE:PPL) announced the settlement of its concurrent offerings of common stock and Equity Units. The net proceeds, totaling approximately $3.2 billion, will be used primarily to repay a portion of the 3.6 billion pounds Sterling Bridge Term Loan Facility used to fund PPL's recently completed 4.1 billion pounds acquisition of the Central Networks electricity distribution business in the United Kingdom.

PPL issued a total of 92 million shares of its common stock at a public offering price of $25.30 per share, including 12 million additional shares purchased by the underwriters to cover over-allotments.

PPL also issued a total of 19.55 million Equity Units, each with a stated amount of $50.00, for an aggregate amount of $977.5 million, including 2.55 million additional Equity Units purchased by the underwriters to cover over-allotments.

"We're pleased by the very strong response to this offering," said James H. Miller, PPL chairman, president and chief executive officer.

"The success of this effort demonstrates clearly that investors understand the strategic value of this transaction to PPL," Miller said. "In addition to providing immediate earnings accretion, the acquisition of Central Networks creates a highly regulated business mix with a significant majority of PPL's expected annual earnings and operating cash flows to come from regulated operations by 2013."

In addition to providing the equity funding for the U.K. acquisition, this week's offerings, because of the additional shares and Equity Units issued to cover the over-allotments, is expected to fund all of PPL's equity needs until late 2012.

BofA Merrill Lynch and Credit Suisse were the lead book running managers for both the common stock and Equity Units offerings. Barclays Capital, Morgan Stanley, and Wells Fargo Securities were joint book runners for the common stock offering. Citi, J.P. Morgan, and UBS Investment Bank were joint book runners for the Equity Units offering.

The acquired businesses are operated by PPL's Western Power Distribution business in the United Kingdom and are now doing business under the names WPD East Midlands and WPD West Midlands.



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