PPL Capital Funding Inc., a subsidiary of PPL Corporation, announced plans to sell $1 billion in Exchangeable Senior Notes due 2030 in a private offering to qualified institutional buyers. The sale will take place under Rule 144A of the Securities Act of 1933. The company also expects to give the initial buyers a 13-day option to purchase up to an additional $150 million in notes.

The notes will be unsecured senior debt of PPL Capital Funding and fully and unconditionally guaranteed by PPL Corporation. They will pay interest twice a year and will mature on Dec. 1, 2030, unless they are exchanged, redeemed, or repurchased earlier.

If investors choose to exchange their notes, PPL Capital Funding will repay the principal in cash and may settle any remaining value in cash, PPL common stock, or a combination of both.

Before Sept. 1, 2030, investors may exchange the notes only if certain conditions are met. After that date and until the day before maturity, investors may exchange their notes at any time.

Proceeds from the sale will be used to repay short-term debt and for general corporate purposes.