PPL Raises $1 Billion Through Sale of Equity Units

March 3, 2026

— Jeff Ward, Lehigh Valley News Briefs

PPL Corp. has raised at least $1 billion through the sale of “equity units” that give buyers a right to buy common stock and an interest in senior notes.

The Allentown-based energy company said last week that the units will be listed on the New York Stock Exchange.

PPL will use the proceeds to repay short-term debt and for “general corporate purposes,” the company said in a press release.

The total proceeds after expenses were projected at $981 million in the case of $1 billion of units being sold, or about $1.13 billion if buyers took another $150 million. Corporate sales often include a 15% “overallotment” if demand is high. That is referred to as a “greenshoe option” in honor of the Green Shoe Manufacturing Co., which created the first overallotment.

PPL provides electricity and natural gas to about 3.6 million customers in Pennsylvania, Rhode Island and Kentucky. Its PPL Electric Utilities subsidiary is a regulated monopoly that delivers electricity to customers in the Lehigh Valley.

The closing price of PPL shares (NYSE:PPL) on Monday was $38.73, giving the company a market capitalization of $29.1 billion.

Below is an abbreviated version of the press release, and here is a link to the statement:

Feb 23, 2026

PPL Corporation announces pricing of equity units offering

ALLENTOWN, Pa., Feb. 23, 2026 /PRNewswire/ — PPL Corporation (NYSE: PPL) today announced it has priced its public offering of 20,000,000 Equity Units. Each Equity Unit will be issued in a stated amount of $50 ($1,000,000,000 aggregate stated amount) and will initially be in the form of a Corporate Unit consisting of a contract to purchase PPL Corporation common stock in the future, a 1/40 undivided beneficial ownership interest in PPL Capital Funding Inc.’s 4.02% Remarketable Senior Notes due 2034 having a principal amount of $1,000 and a 1/40 undivided beneficial ownership interest in PPL Capital Funding Inc.’s 4.02% Remarketable Senior Notes due 2039 having a principal amount of $1,000. Each of the Remarketable Senior Notes is subject to remarketing, subject to certain conditions and during certain periods. The offering is expected to close on February 26, 2026, subject to customary closing conditions.

PPL Corporation intends to apply to list the corporate units on The New York Stock Exchange and expects trading to commence within 30 days of the date of initial issuance (subject to listing approval).

Total distributions on the Corporate Units will be at the rate of 7.00% per year, consisting of interest payments on the Remarketable Senior Notes due 2034, interest payments on the Remarketable Senior Notes due 2039 and contract adjustment payments under the related stock purchase contracts. Under the purchase contracts, holders are required to purchase a variable number of shares of PPL Corporation common stock no later than February 15, 2029. The reference price for the purchase contracts is $37.2606 per share, which is approximately equal to the closing price of PPL Corporation common stock on The New York Stock Exchange on February 23, 2026. The minimum settlement rate under the purchase contracts is 1.0735 shares of PPL Corporation common stock, which is approximately equal to the $50 stated amount per Equity Unit divided by the threshold appreciation price of $46.5766 per share, which represents a premium of approximately 25.00% over the reference price. The maximum settlement rate under the purchase contracts is 1.3419 shares of PPL Corporation common stock, which is approximately equal to the $50 stated amount per Equity Unit divided by the reference price. Each of the settlement rates is subject to adjustment in certain circumstances. 

PPL Corporation has granted the underwriters an option to purchase within the 13-day period beginning on, and including, the initial issuance date of the Equity Units up to 3,000,000 additional Corporate Units (an additional $150,000,000 aggregate stated amount), solely for the purpose of covering over-allotments.

PPL Corporation expects to use the net proceeds from this offering, which are expected to be approximately $981 million (or approximately $1,128 million if the over-allotment option is exercised in full), after deducting the underwriting discounts and commissions but before deducting estimated offering expenses, to repay short-term debt and for general corporate purposes.

J.P. Morgan Securities LLC, BofA Securities, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC will be joint book-running managers for the offering.

The offering is being made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. Any offers of the securities will be made exclusively by means of a prospectus supplement and accompanying prospectus. Copies of these documents may be obtained from J.P. Morgan Securities LLC, Attention: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or email: prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; BofA Securities at NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001 Attn: Prospectus Department, or by email at dg.prospectus_requests@bofa.com; Morgan Stanley Prospectus Department at Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-1649 or by email at prospectus@morganstanley.com; or RBC Capital Markets, LLC, Attn: Equity Capital Markets, 200 Vesey Street, 8^th floor, New York, New York 10281, by telephone at 877-822-4089 or by email at equityprospectus@rbccm.com.

About PPL
PPL Corporation (NYSE: PPL), based in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.6 million customers in the U.S. PPL’s high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions.