PPL-U, looks like the market likes this one, its at 54.7 | Recent IPOs Message Board Posts

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Msg  780 of 5069  at  7/22/2010 10:25:17 AM  by


PPL-U, looks like the market likes this one, its at 54.7

"PPL Corp., 9.50% Equity Units

Ticker Symbol: PPL-U CUSIP: 69351T601 Exchange: NYSE
Security Type: Mandatory Convertible Security
SECURITY DESCRIPTION: PPL Corp., 9.50% Equity Units, stated amount $50 per unit, initially consisting of Corporate Units which include a stock purchase contract and a 1/29th or 5% interest in a 4.625% junior subordinated note with a principal amount of $1000. The stock purchase contract requires the holder to purchase for $50 a variable number of shares of PPL Corp. (NYSE: PPL) common stock no later than 7/1/2013 and pays a contract adjustment rate of 4.875% per annum. The stock purchase settlement rate will be 1.7361 shares per unit if the then current market price is equal to or greater than $28.80 and 2.0833 shares per unit if the market price is equal to or less than $24.00. For market prices between those values the settlement rate will be $50 divided by the market value. Prior to the IPO of this security, the last reported sale price of the common stock on 6/18/2010 was $26.06 per share. The note is due 7/1/2018 and is subject to reset and remarketing in two tranches between 3/28/2013 and 6/13/2013 (see the prospectus for further information). The Corporate Units pay quarterly distributions of 9.50% ($4.75) per annum on 1/1, 4/1, 7/1 & 10/1 to holders of record on the record date which is one business day prior to the payment date while the securities remain in book-entry form (NOTE: the ex-dividend date is at least 2 business days prior to the record date). 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. Distributions paid by these securities are derived from interest paid on the underlying debt securities and therefore are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. The notes are pledged as collateral to secure the holder's obligations under the stock purchase contract. The holder has the right at any time to convert the Corporate Units to Treasury Units by the substitution of a specified zero-coupon U.S. Treasury security for the notes and to later recreate Corporate Units. The notes are junior, subordinated, and unsecured and rank equally with the company's other junior subordinated indebtedness. See the IPO prospectus for extensive additional information on the equity units and their mandatory conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.
Exchange Cpn Rate
Ann Amt LiqPref
CallPrice Call Date
Matur Date Moodys/S&P
Dated Conversion
Shares@Price Distribution Dates 15%
Tax Rate
Chart 9.50%
$4.75 $50.00
n.a. 7/01/2013
7/01/2018 Baa3 / BBB
7/21/10 1.7361@$28.80+
2.0833@$24.00 1/1, 4/1, 7/1 & 10/1
Click for MW ExDiv Date
Click for Yahoo ExDiv Date

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