PPL Corporation ("PPL" or the "Company") PPL today announced the final terms for the July 1, 2013
(the "Settlement Date") settlement of its 2010 Equity Units (CUSIP 69351T 601,
NYSE: PPL PR U). On the Settlement Date, PPL will issue an aggregate of
40,031,500 shares of its Common Stock to the holders of the Company's 2010
Equity Units in respect of the stock purchase contracts constituting a part
thereof, as provided under the Purchase Contract and Pledge Agreement (the
"PCPA"), dated as of June 28, 2010, by and among PPL, The Bank of New York
Mellon, as Purchase Contract Agent, and The Bank of New York Mellon, as
Collateral Agent, Custodial Agent and Securities Intermediary. The Equity
Units, which presently trade on the New York Stock Exchange in the form of
Corporate Units, will be suspended from trading on the New York Stock Exchange
before the opening of business on July 1, 2013, the Settlement Date.
In accordance with the PCPA, the observation period applicable to the 2010
Equity Units expired at the close of trading on the New York Stock Exchange on
Wednesday, June 26, 2013, and the applicable market value, as calculated
pursuant to Section 5.01 of the PCPA, is $29.3043. In addition, (a) the
minimum settlement rate has been adjusted to 1.7405 from 1.7361 shares of
Common Stock and (b) the maximum settlement rate has been adjusted to 2.0866
from 2.0833 shares of Common Stock. The threshold appreciation price has been
adjusted to $28.73 from $28.80 and the reference price has been adjusted to
$23.94 from $24.00, in each case calculated in accordance with Section
5.05(a)(vii)(1) of the PCPA to reflect the adjustment to the minimum and
maximum settlement rates set forth above. Pursuant to the PCPA, the minimum
settlement rate shall apply because the applicable market value of $29.3043
exceeds the adjusted threshold appreciation price of $28.73.
The foregoing adjustments have been made in accordance with Section 5.05(a)(v)
of the PCPA, which provides that if the Company makes distributions to all
holders of its Common Stock exclusively in cash during any quarterly period in
an amount in excess of the reference dividend of $0.35 per share of Common
Stock, the minimum settlement rate and maximum settlement rate shall each be
increased by dividing such settlement rate in effect immediately prior to the
close of business on the date fixed for determination of the stockholders of
the Company entitled to receive such distribution by a fraction, the numerator
of which shall be equal to the current market price on the date fixed for such
determination less the amount, if any by which the per share amount of the
distribution exceeds the reference dividend and the denominator of which shall
be equal to such current market price. PPL increased the per share quarterly
dividend on its Common Stock to $0.36 in the first quarter of 2012 and to
$0.3675 in the first quarter of 2013.
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