Financing Activities

3 Months Ended

Mar. 31, 2020

8. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

The Registrants maintain credit facilities to enhance liquidity, provide credit support and act as a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LKE, LG&E and KU also apply to PPL and the credit facilities and commercial paper programs of LG&E and KU also apply to LKE. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets. The following credit facilities were in place at:



	March 31, 2020									December 31, 2019
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
U.K.
WPD plc
Syndicated Credit Facility (a)	Jan. 2023	£	210	£	156	£	—	£	56	£	155	£	—
WPD (South West)
Syndicated Credit Facility (b)	July 2021	245		—		—		245		40		—
WPD (East Midlands)
Syndicated Credit Facility	July 2021	300		—		—		300		—		—
WPD (West Midlands)
Syndicated Credit Facility (c)	July 2021	300		54		—		246		48		—
Uncommitted Credit Facilities		100		—		4		96		—		4
Total U.K. Credit Facilities (d)		£	1,155	£	210	£	4	£	943	£	243	£	4
U.S.
PPL Capital Funding (e)
Syndicated Credit Facility	Jan. 2024	$	1,450	$	575	$	180	$	695	$	—	$	450
Term Loan Credit Facility	Mar. 2021	200		200		—		—		—		—
Bilateral Credit Facility	Mar. 2021	50		50		—		—		—		—
Bilateral Credit Facility	Mar. 2021	50		34		15		1		—		15
Total PPL Capital Funding Credit Facilities		$	1,750	$	859	$	195	$	696	$	—	$	465

PPL Electric
Syndicated Credit Facility (f)	Jan. 2024	$	650	$	85	$	1	$	564	$	—	$	1

LG&E
Syndicated Credit Facility (g)	Jan. 2024	$	500	$	100	$	59	$	341	$	—	$	238
Total LG&E Credit Facilities		$	500	$	100	$	59	$	341	$	—	$	238

KU
Syndicated Credit Facility (g)	Jan. 2024	$	400	$	100	$	44	$	256	$	—	$	150
Total KU Credit Facilities		$	400	$	100	$	44	$	256	$	—	$	150


(a)	The amounts borrowed at March 31, 2020 and December 31, 2019 were USD-denominated borrowings of $200 million for both periods, which bore interest at 2.43% and 2.52%. The interest rates on the borrowings are equal to one-month USD LIBOR plus a spread. The unused capacity reflects the amounts borrowed in GBP of £154 million as of the date borrowed.


(b)	The amount borrowed at December 31, 2019 was GBP-denominated borrowings which equated to $51 million and bore interest at 1.09%.


(c)	The amount borrowed at March 31, 2020 and December 31, 2019 were GBP-denominated borrowings which equated to $69 million and $62 million and bore interest at 1.11%. The interest rates on the borrowings are equal to one-month GBP LIBOR plus a margin.


(d)	At March 31, 2020, the unused capacity under the U.K. credit facilities was $1.2 billion.


(e)	The interest rates on the borrowings are based on one-month LIBOR plus a spread, which resulted in a weighted-average rate of 1.97% at March 31, 2020.


(f)	The interest rate on the borrowing is equal to one-month LIBOR plus a spread, which was 1.96% at March 31, 2020.


(g)	The interest rates on the borrowings are equal to one-month LIBOR plus a spread, which were 1.81% at March 31, 2020.

(PPL)

In March 2020, PPL Capital Funding entered into a $200 million term loan credit facility expiring in March 2021 and borrowed the full principal amount under the facility at an initial interest rate of 1.96%. The applicable interest rate on borrowings fluctuates periodically and is based on LIBOR plus a spread. The proceeds were used to repay short-term debt and for general corporate purposes.

On April 1, 2020, PPL Capital Funding entered into a $100 million term loan credit facility expiring in March 2021 and borrowed the full principal amount under the facility at an initial interest rate of 1.73%. The applicable interest rate on borrowings fluctuates periodically and is based on LIBOR plus a spread. The proceeds will be used to repay short-term debt and for general corporate purposes.

PPL has guaranteed PPL Capital Funding's obligations under these credit agreements.

(All Registrants)

PPL, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:



	March 31, 2020							December 31, 2019
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	1.91%	$	1,500	$	180	$	1,320	2.13%	$	450
PPL Electric		650		—		650			—
LG&E	1.71%	350		59		291		2.07%	238
KU	1.65%	350		44		306		2.02%	150
Total		$	2,850	$	283	$	2,567		$	838

(PPL Electric, LKE, LG&E, and KU)

See Note 11 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

On April 1, 2020, PPL Capital Funding entered into a $100 million term loan credit facility expiring in March 2022 and borrowed the full principal amount under the facility at an initial interest rate of 1.72%. The applicable interest rate on borrowings fluctuates periodically and is based on LIBOR plus a spread. The proceeds will be used to repay short-term debt and for general corporate purposes.

On April 1, 2020, PPL Capital Funding issued $1 billion of 4.125% Senior Notes due 2030. PPL Capital Funding received proceeds of $993 million, net of a discount and underwriting fees, which will be used to repay short-term debt and for general corporate purposes.

PPL has guaranteed PPL Capital Funding's obligations under the credit agreement and notes.

Equity Securities

ATM Program

In February 2018, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $1.0 billion of its common stock through an at-the-market offering program, including a forward sales component. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. There were no issuances under the ATM program for the three months ended March 31, 2020.

Distributions

In February 2020, PPL declared a quarterly common stock dividend, payable April 1, 2020, of 41.50 cents per share (equivalent to $1.66 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors.