PPL Corporation (NYSE:PPL) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
Form 8-K is incorporated by reference into this Item 1.01.
Obligation under an Off-Balance Sheet Arrangement of a Registrant
indirect wholly owned subsidiary of PPL Corporation, entered into a
230 million (the “Loan Amount”) nine month Term Facility
Agreement (the “Facility”) with HSBC Bank, PLC and Mizuho Bank,
Ltd., as Mandated Lead Arrangers, and Mizuho Bank, Ltd., as
Facility Agent. On March 29, 2017, WPD borrowed the full Loan
Amount under the Facility. Proceeds of the borrowing under the
Facility will be used, and may only be used, to make an advance
payment of WPDs pension contribution for the year ending April 5,
2018.
earlier of the expiration of each interest rate term under the
Facility and the Facility’s final maturity date. The Loan Amount
will bear interest at a percentage rate determined for each
interest rate term equal to the product of (a) the Loan Amount,
multiplied by (b) the applicable London Interbank Offered Rate
determined as provided in the Facility, (c) plus a margin amount,
determined in accordance with the Facility and based on credit
ratings assigned to WPD from time to time by Moody’s Investor
Services Limited and Standard Poor’s Rating Service and (d)
divided by the number of days in the applicable interest rate term.
in part in a minimum amount of 5 million and in increments of 1
million thereafter without penalty, and is mandatorily pre-payable
in the event of a change in control of WPD or illegality, in each
case as provided in the Facility. Amounts prepaid may not be
reborrowed.
covenants which require that WPD’s (a) total net debt does not
exceed (i) 85% of its regulatory asset base in order to be able to
make distributions and pay dividends, and (ii) in all other
respects, 87.5% of its regulatory asset base, and (b) consolidated
EBITDA to interest payable is not less than 3.0 to 1.0, in each
case as calculated to the Facility.
events of default. Failure to comply with the covenants beyond
applicable grace periods and certain other events could result in
acceleration of the Loan Amount and/or termination of the Facility.
complete and is subject to, and qualified in its entirety by, the
full text of the Facility, which is filed as Exhibit 10.1 hereto
and incorporated herein by reference.
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(d)
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Exhibits
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10.1 –
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230,000,000 Term Loan Agreement, dated March 28, 2016,
between Western Power Distribution plc and HSBC Bank, PLC and Mizuho Bank, Ltd., as Mandated Lead Arrangers, and Mizuho Bank, Ltd., as Facility Agent. |
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About PPL Corporation (NYSE:PPL)
PPL Corporation (PPL) is a utility holding company. Through its subsidiaries, PPL delivers electricity to customers in the United Kingdom, Pennsylvania, Kentucky, Virginia and Tennessee; delivers natural gas to customers in Kentucky, and generates electricity from power plants in Kentucky. It operates through three segments: U.K. Regulated Segment, Kentucky Regulated Segment and Pennsylvania Regulated Segment. The U.K. Regulated Segment comprises PPL Global, which includes PPL WPD Limited and its subsidiaries’ regulated electricity distribution operations, among others. The Kentucky Regulated segment consists of the operations of LG&E and KU Energy LLC, a subsidiary of PPL, which owns and operates regulated public utilities engaged in the generation, transmission, distribution and sale of electricity and distribution and sale of natural gas. The Pennsylvania Regulated segment consists of the operations of PPL Electric Utilities Corporation, which distributes and transmits electricity. PPL Corporation (NYSE:PPL) Recent Trading Information
PPL Corporation (NYSE:PPL) closed its last trading session down -0.32 at 37.07 with 3,518,711 shares trading hands.
