The Firm represented PPL Corporation (“PPL”) in its concurrent offerings of 103,500,000 shares of Common Stock for gross proceeds of approximately $2.484 billion and $1.15 billion aggregate principal amount of Equity Units, each including the full exercise of the underwriters’ over-allotment option. This is the largest equity capital raise ever done by a utility.
Proceeds of the offerings will be used to fund a portion of the purchase price of PPL’s recently announced $7.6 billion acquisition of E.ON U.S. LLC, the parent company of Louisville Gas and Electric Company and Kentucky Utilities Company. The acquisition is subject to certain regulatory approvals and other customary conditions of closing and is anticipated to close later in 2010. The Firm is also representing PPL in connection with the acquisition.
PPL, headquartered in Allentown, PA, owns or controls nearly 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to about 4 million customers in Pennsylvania and the United Kingdom.
The Simpson Thacher team for the transaction included Vince Pagano, Arjun Koshal, Brian Rosenzweig and summer associate Matt Tappin (Capital Markets), Marcy Geller, Jonathan Talansky, Drew Purcell and summer associate Jodi Sackel (Tax), Adeeb Fadil (Environmental), Jeanne Annarumma and Jennifer Pepin (Executive Compensation and Employee Benefits), and paralegal Allison Nichols.