PPL Electric Secures $500M via 5.55% Secured Bonds; Proceeds to Repay Debt

Rhea-AI Filing Summary

PPL Electric Utilities Corporation entered into an underwriting agreement and sold $500,000,000 of First Mortgage Bonds, 5.55% Series due 2055, issued under its Indenture on August 11, 2025. The Bonds are secured by the lien of the Indenture, which creates a lien on substantially all of PPL Electric's distribution properties and certain transmission properties, subject to exceptions and exclusions described in the Indenture. Net proceeds will be used to repay short-term debt and for general corporate purposes. The offering was made under PPL Electric's Form S-3 registration statement and related documents are filed as exhibits to the report.

Positive

• $500,000,000 of long-term financing established through First Mortgage Bonds, providing durable liquidity
• Proceeds designated to repay short-term debt, reducing near-term refinancing exposure

Negative

• The issuance creates a long-term 5.55% interest obligation due in 2055
• Bonds are secured by a lien on substantially all distribution properties, encumbering key assets

Insights

Debt Capital Markets Specialist

TL;DR: $500M long-term secured bond issuance at a 5.55% coupon provides long-duration financing and replaces short-term borrowings.

The issuance of $500,000,000 of First Mortgage Bonds due 2055 represents a material long-term financing transaction for PPL Electric. The fixed 5.55% coupon locks in interest costs over an extended horizon and the bonds are secured by a lien on substantially all distribution assets and certain transmission assets, which increases creditor protection for bondholders. Proceeds are earmarked to repay short-term debt and for general corporate purposes, showing the company is converting near-term financing into long-term capital. The underwriting syndicate includes major firms, and the transaction was offered under a Form S-3 registration.

Credit Analyst

TL;DR: This creates a $500M secured obligation maturing in 2055, reducing near-term refinancing needs but adding long-term leverage.

The Bonds establish a long-dated secured claim on PPL Electric's distribution and certain transmission properties, which is significant from a creditor perspective. Using proceeds to repay short-term debt can reduce rollover risk in the near term, while the 2055 maturity and 5.55% coupon represent a durable fixed-rate liability on the balance sheet. Exhibits filed include the supplemental indenture and officer's certificate supporting the issuance. The transaction is a clearly material financing event for stakeholders assessing capital structure and asset encumbrance.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 

Date of Report (Date of earliest event reported):  August 6, 2025

 

Commission File Number			Registrant; State of Incorporation; Address and Telephone Number												IRS Employer Identification No.
1-11459			PPL Corporation												23-2758192
			(Exact name of Registrant as specified in its charter)
			Pennsylvania
			645 Hamilton Street
			Allentown,						PA			18101
			(610)			774-5151
1-905			PPL Electric Utilities Corporation												23-0959590
			(Exact name of Registrant as specified in its charter)
			Pennsylvania
			827 Hausman Road
			Allentown,						PA			18104-9392
			(610)			774-5151

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol:			Name of each exchange on which registered
Common Stock of PPL Corporation			PPL			New York Stock Exchange
Junior Subordinated Notes of PPL Capital Funding, Inc.
2007 Series A due 2067			PPL/67			New York Stock Exchange

Indicate by a check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐			PPL Corporation
☐			PPL Electric Utilities Corporation
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐			PPL Corporation
☐			PPL Electric Utilities Corporation

Section 2 – Financial Information

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

and

Section 8 – Other Events

Item 8.01 Other Events

On August 6, 2025, PPL Electric Utilities Corporation ("PPL Electric") entered into an underwriting agreement (the "Underwriting Agreement") with Barclays Capital Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC and RBC Capital Markets, LLC, as representatives of the underwriters (the "Underwriters"), relating to the offering and sale by PPL Electric of $500,000,000 of First Mortgage Bonds, 5.55% Series due 2055 (the "Bonds").

The Bonds were issued on August 11, 2025, under PPL Electric's Indenture (the "2001 Indenture"), dated as of August 1, 2001, to The Bank of New York Mellon, as trustee, as previously amended and supplemented and as amended and supplemented by Supplemental Indenture No. 26 thereto (the "Supplemental Indenture"), dated as of August 1, 2025 (collectively, the "Indenture"). The Bonds will be secured by the lien of the Indenture, which creates a lien on substantially all of PPL Electric's distribution properties and certain of its transmission properties, subject to certain exceptions and exclusions, as described therein.

The Bonds are due August 15, 2055, subject to early redemption. PPL Electric will use the net proceeds from the sale of the Bonds to repay short-term debt and for general corporate purposes.

The Bonds were offered and sold under PPL Electric's Registration Statement on Form S-3 on file with the Securities and Exchange Commission (Registration No. 333-277140-03).

A copy of the Underwriting Agreement is attached as Exhibit 1(a) to this report and incorporated herein by reference. The Supplemental Indenture and Officer's Certificate are filed with this report as Exhibits 4(a) and 4(b), respectively.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)

Exhibits

1(a) -

Underwriting Agreement, dated August 6, 2025.

4(a) -

Supplemental Indenture No. 26, dated as of August 1, 2025, of PPL Electric Utilities Corporation to The Bank of New York Mellon, as Trustee.

4(b) -

Officer's Certificate, dated August 11, 2025, pursuant to Section 201 and Section 301 of the Indenture.

5(a) -

Opinion of W. Eric Marr, Assistant General Counsel of PPL Services Corporation.

5(b) -

Opinion of Troutman Pepper Locke LLP.

23(a) -

Consent of W. Eric Marr, Assistant General Counsel of PPL Services Corporation (included as part of Exhibit 5(a)).

23(b) -

Consent of Troutman Pepper Locke LLP (included as part of Exhibit 5(b)).

104 -

Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PPL CORPORATION
			By:			/s/ Marlene C. Beers
						Marlene C. Beers Vice President and Controller
			PPL ELECTRIC UTILITIES CORPORATION
			By:			/s/ Marlene C. Beers
						Marlene C. Beers Vice President and Controller

Dated:  August 11, 2025

FAQ

What did PPL (PPL) announce in this 8-K filing?

PPL Electric sold $500,000,000 of First Mortgage Bonds, 5.55% Series due 2055, under its Indenture.

What will PPL use the proceeds from the bond sale for?

Net proceeds will be used to repay short-term debt and for general corporate purposes.

Are the bonds secured and what do they secure against?

Yes—the Bonds are secured by the lien of the Indenture, creating a lien on substantially all distribution properties and certain transmission properties.

What is the coupon and maturity of the bonds issued by PPL Electric?

The Bonds carry a 5.55% coupon and mature on August 15, 2055, subject to early redemption.

Under what registration was the offering made?

The Bonds were offered and sold under PPL Electric's Form S-3 registration statement (Registration No. 333-277140-03).