The notes will initially bear interest at a rate of 4.625% per year, payable quarterly on January 1, April 1, July 1 and October 1 of each year (except where such date is not a business day, interest will be payable as of the next subsequent business day, without adjustment), commencing on October 1, 2010. The notes will initially be subordinated to all of PPL Capital Funding Inc.?s existing and future ÙSenior Indebtednessˆ (as defined under ÙDescription of the Notes ? Subordinationˆ). In addition, the notes will be effectively subordinated to all liabilities of our subsidiaries (other than those of PPL Capital Funding, Inc.). Prior to July 1, 2015, PPL Capital Funding, Inc. will have the right to defer interest payments on the notes one or more times for one or more consecutive interest periods without giving rise to an event of default. The notes will be remarketed in two tranches and will be the senior or subordinated, unsecured obligations of PPL Capital Funding as described in this prospectus supplement. We may elect to remarket the notes as fixed-rate notes and/or as floating-rate notes and to modify certain other terms of the notes in connection with the remarketing. If the remarketing is successful, the interest rate on the notes will be reset and thereafter, if any of the remarketed notes are fixed-rate notes, interest on such notes will be payable semi-annually.
We will also pay you quarterly contract adjustment payments at a rate of 4.875% per year of the stated amount of $50 per Equity Unit, or $2.4375 per year, subject to our right to defer contract adjustment payments, as described in this prospectus supplement.
Other than during a blackout period (as defined herein) or after a successful remarketing, you can create Treasury Units from Corporate Units by substituting Treasury securities for your undivided beneficial ownership interest in the notes comprising a part of the Corporate Units, and you can recreate Corporate Units by substituting your undivided beneficial ownership interest in the notes for the Treasury securities comprising a part of the Treasury Units.
Your ownership interest in the notes (or after a successful optional remarketing, the applicable ownership interest in the Treasury portfolio) or the Treasury securities, as the case may be, will be pledged to us to secure your obligation under the related purchase contract.
If there is a successful optional remarketing of the notes as described in this prospectus supplement, and you hold Corporate Units, your applicable ownership interest in the Treasury portfolio purchased with the proceeds from the remarketing will be used to satisfy your payment obligations under the purchase contract.
If there is a successful final remarketing of the notes as described in this prospectus supplement, and you hold Corporate Units, the proceeds from the remarketing will be used to satisfy your payment obligations under the purchase contract, unless you have elected to settle with separate cash.
Full Prospectus PDF », Secondary Prospectus PDF », PPL Page »
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PPL is a holding company. Through its subsidiaries, Co. delivers electricity to customers in Pennsylvania, Kentucky, and Virginia; delivers natural gas to customers in Kentucky; and generates electricity from power plants in Kentucky. Co.'s segments are: Kentucky Regulated, which includes the regulated electricity generation, transmission and distribution operations conducted by Co.'s subsidiaries, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company, and LG&E's regulated distribution and sale of natural gas; and Pennsylvania Regulated, which consists of Co.'s subsidiary, PPL Electric Utilities Corporation that delivers electricity in eastern and central Pennsylvania. Open the PPL Information Page » |
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