PPL Electric Utilities Corp. sold $400 million of its 3% first mortgage bonds due Oct. 1, 2049, according to a Sept. 3 free writing prospectus.
Interest on the bonds is payable every April 1 and Oct. 1, commencing April 1, 2020. The bonds have a spread to benchmark Treasury of 115 basis points.
The PPL Corp. subsidiary plans to use net proceeds to repay short-term debt and for general corporate purposes. At June 30, the utility had $185 million of outstanding short-term debt, including commercial paper borrowings.
Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, CIBC World Markets Corp. and U.S. Bancorp Investments Inc. served as joint book-running managers. BMO Capital Markets Corp., Santander Investment Securities Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC acted as co-managers.
