PPL units enter term loan agreements totaling $600 million

By Mary-Katherine Stinson

Lexington, Ky., Aug. 1 – PPL Corp. subsidiaries Louisville Gas and Electric Co. and Kentucky Utilities Co. each entered into separate term loan agreements on July 29, according to an 8-K filing with the Securities and Exchange Commission.

Both LG&E and Kentucky Utilities entered term loan agreements for $300 million each and each borrowed the full amount.

The term loans mature on July 29,2024 and will bear interest based on SOFR.

The companies may make prepayments on the debt, but amounts prepaid may not be reborrowed.

Both agreements require the companies to maintain a consolidated debt to total consolidated capitalization ratio not to exceed 70% or to risk a default event.

U.S. Bank NA is the administrative agent, sole lead arranger and sole bookrunner for both agreements.

In the LG&E term loan agreement, Truist Bank is the syndication agent and PNC Bank, NA is the senior managing agent.

In the case of the Kentucky Utilities agreement, PNC Bank is the syndication agent and Truist Bank is the senior managing agent.

Kentucky Utilities is an electric utility based in Lexington, Ky. Louisville Gas and Electric is an electric and gas utility based in Louisville, Ky. PPL is an Allentown, Pa.-based electric and natural gas utility company.

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