Louisville Gas and Electric and Kentucky Utilities issue $700 million bonds each

Louisville Gas and Electric Company and Kentucky Utilities Company, subsidiaries of PPL Corp (NYSE:PPL), each issued $700 million in principal amount of 5.850% First Mortgage Bonds due 2055 on Wednesday. The information is based on a statement provided in a Securities and Exchange Commission filing. PPL, currently valued at $27.5 billion, is trading near its 52-week high according to InvestingPro data, which indicates the stock is slightly overvalued at current levels.

The bonds for both utilities are secured by liens on substantially all of their real and tangible personal property in Kentucky, relating to electricity generation, transmission, and distribution. Louisville Gas and Electric’s bonds are also secured by assets used in the storage, transportation, and distribution of natural gas.

Both companies plan to use the net proceeds from the bond offerings to repay upcoming maturities and short-term debt, as well as for other general corporate purposes. Louisville Gas and Electric intends to repay $300 million of 3.300% Series First Mortgage Bonds due October 1, 2025, while Kentucky Utilities plans to repay $250 million of 3.300% Series First Mortgage Bonds due October 1, 2025.

The bonds were issued under indentures with The Bank of New York Mellon as trustee and may be subject to early redemption prior to their scheduled maturity on August 15, 2055.

The offerings were made under registration statements on Form S-3 filed with the SEC. Supplemental indentures and related officer’s certificates were included as exhibits in the filing.

In other recent news, PPL Corporation reported its financial results for the second quarter of 2025, where earnings per share (EPS) were $0.32, missing the forecast of $0.38. Despite this, the company exceeded revenue expectations, reporting $2.03 billion compared to the anticipated $1.99 billion. In addition to the earnings report, PPL Corporation disclosed that it has entered into forward contracts to sell approximately 27.4 million shares of its common stock. The blended initial forward price is about $35.90 per share, with expected net proceeds of approximately $984 million. These transactions are part of PPL’s at-the-market equity distribution program, established in February 2025. The contracts are valued at around $500 million each and require settlement by December 30, 2026, and August 11, 2027. These developments provide investors with insights into PPL’s recent activities and financial performance.

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