PPL CorpPPL
PPL Corp Debt Disclosure
8. Financing Activities
Credit Arrangements and Short-term Debt
(All Registrants)
The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LG&E and KU also apply to PPL. 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:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Expiration Date | Capacity | Borrowed | Letters of Credit and Commercial Paper Issued (a) | Unused Capacity | Borrowed | Letters of Credit and Commercial Paper Issued (a) | |||||||||||||||||||||||||||||||||||
| PPL | |||||||||||||||||||||||||||||||||||||||||
| PPL Capital Funding (b) | |||||||||||||||||||||||||||||||||||||||||
| Syndicated Credit Facility (c)(d)(e) | Dec. 2029 | $ | 1,500 | $ | — | $ | 456 | $ | 1,044 | $ | — | $ | 138 | ||||||||||||||||||||||||||||
| Bilateral Credit Facility (c)(d) | Feb. 2026 | 100 | — | — | 100 | — | — | ||||||||||||||||||||||||||||||||||
| Bilateral Credit Facility (c)(d) | Feb. 2026 | 100 | — | 17 | 83 | — | 15 | ||||||||||||||||||||||||||||||||||
| Total PPL Capital Funding Credit Facilities | $ | 1,700 | $ | — | $ | 473 | $ | 1,227 | $ | — | $ | 153 | |||||||||||||||||||||||||||||
| PPL Electric | |||||||||||||||||||||||||||||||||||||||||
| Syndicated Credit Facility (c)(d) | Dec. 2029 | 750 | — | 6 | 744 | — | 1 | ||||||||||||||||||||||||||||||||||
| Total PPL Electric Credit Facilities | $ | 750 | $ | — | $ | 6 | $ | 744 | $ | — | $ | 1 | |||||||||||||||||||||||||||||
| LG&E | |||||||||||||||||||||||||||||||||||||||||
| Syndicated Credit Facility (c)(d) | Dec. 2029 | 600 | — | — | 600 | — | 25 | ||||||||||||||||||||||||||||||||||
| Total LG&E Credit Facilities | $ | 600 | $ | — | $ | — | $ | 600 | $ | — | $ | 25 | |||||||||||||||||||||||||||||
| KU | |||||||||||||||||||||||||||||||||||||||||
| Syndicated Credit Facility (c)(d) | Dec. 2029 | 600 | — | — | 600 | — | 140 | ||||||||||||||||||||||||||||||||||
| Total KU Credit Facilities | $ | 600 | $ | — | $ | — | $ | 600 | $ | — | $ | 140 | |||||||||||||||||||||||||||||
(a)Commercial paper issued reflects the undiscounted face value of the issuance.
(b)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.
(c)Each company pays customary fees under its respective facility and borrowings generally bear interest at applicable secured overnight financing rates or base rates, plus an applicable margin.
(d)The facilities contain a financial covenant requiring debt to total capitalization not to exceed 70% for PPL Capital Funding, RIE, PPL Electric, LG&E and KU, as calculated in accordance with the facilities and other customary covenants. Additionally, subject to certain conditions, PPL Capital Funding may request that the capacity of one of its bilateral credit facilities expiring in February 2026 be increased by up to $30 million and that the capacity of its syndicated credit facility be increased by up to $400 million. PPL Electric, LG&E and KU may each request up to a $250 million increase in its syndicated credit facility's capacity, subject to regulatory approval of the increased capacity. Participation in any such increase is at the sole discretion of each lender.
(e)Includes a $400 million borrowing sublimit for RIE and a $1.1 billion sublimit for PPL Capital Funding at December 31, 2025 and a $250 million borrowing sublimit for RIE and a $1 billion sublimit for PPL Capital Funding at December 31, 2024. At December 31, 2025, PPL Capital Funding had $355 million of commercial paper outstanding and RIE had $101 million commercial paper outstanding. At December 31, 2024, PPL Capital Funding had $138 million of commercial paper outstanding and RIE had no commercial paper outstanding. RIE's obligations under the facility are not guaranteed by PPL.
(PPL)
In January 2026, PPL Capital Funding amended its existing $1.50 billion syndicated credit facility to extend the termination date of certain commitments from December 6, 2029 to December 6, 2030.
(PPL and PPL Electric)
In January 2026, PPL Electric amended its existing $750 million syndicated credit facility to extend the termination date of certain commitments from December 6, 2029 to December 6, 2030.
(PPL and LG&E)
In January 2026, LG&E amended its existing $600 million syndicated credit facility to extend the termination date of certain commitments from December 6, 2029 to December 6, 2030.
(PPL and KU)
In January 2026, KU amended its existing $600 million syndicated credit facility to extend the termination date of certain commitments from December 6, 2029 to December 6, 2030.
(All Registrants)
The Registrants 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:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Weighted - Average Interest Rate | Capacity | Commercial Paper Issuances (a) | Unused Capacity | Weighted - Average Interest Rate | Commercial Paper Issuances (a) | ||||||||||||||||||||||||||||||
| PPL Capital Funding (b)(c) | 4.16% | $ | 1,600 | $ | 355 | $ | 1,245 | 4.76% | $ | 138 | |||||||||||||||||||||||||
| RIE (c) | 4.21% | 400 | 101 | 299 | — | ||||||||||||||||||||||||||||||
| PPL Electric | 750 | — | 750 | — | |||||||||||||||||||||||||||||||
| LG&E | 600 | — | 600 | 4.72% | 25 | ||||||||||||||||||||||||||||||
| KU | 600 | — | 600 | 4.71% | 140 | ||||||||||||||||||||||||||||||
| Total | $ | 3,950 | $ | 456 | $ | 3,494 | $ | 303 | |||||||||||||||||||||||||||
(a)Commercial paper issued reflects the undiscounted face value of the issuance.
(b)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.
(c)Issuances under the PPL Capital Funding and RIE commercial paper programs are supported by the PPL Capital Funding syndicated credit facility, which at December 31, 2025, had a total capacity of $1.50 billion, with a $400 million borrowing sublimit for RIE and a $1.1 billion sublimit for PPL Capital Funding. At December 31, 2024, the borrowing sublimits were $250 million for RIE and $1 billion for PPL Capital Funding. RIE's obligations under the facility are not guaranteed by PPL. The sublimits of each borrower may be decreased or increased at the borrowers' option up to a prescribed amount such that all borrowings under the syndicated credit facility cannot exceed the size of the credit facility of $1.50 billion. PPL Capital Funding's commercial paper program is also backed by a separate bilateral credit facility for $100 million.
(PPL Electric, LG&E and KU)
See Note 13 for a discussion of intercompany borrowings.
Long-term Debt (All Registrants)
| December 31, | |||||||||||||||||||||||
| Weighted-Average Rate (d) | Maturities (d) | 2025 | 2024 | ||||||||||||||||||||
| PPL | |||||||||||||||||||||||
| Senior Unsecured Notes | 4.34 | % | 2026 - 2047 | $ | 4,316 | $ | 4,316 | ||||||||||||||||
| Senior Secured Notes/First Mortgage Bonds (a)(b)(c) | 4.64 | % | 2026 - 2055 | 12,227 | 10,878 | ||||||||||||||||||
| Exchangeable Senior Unsecured Notes | 2.94 | % | 2028 - 2030 | 2,150 | 1,000 | ||||||||||||||||||
| Junior Subordinated Notes | 6.61 | % | 2067 | 480 | 480 | ||||||||||||||||||
| Total Long-term Debt before adjustments | 19,173 | 16,674 | |||||||||||||||||||||
| Long-term Debt, repurchased affiliate bonds | (84) | — | |||||||||||||||||||||
| Unamortized premium and (discount), net | (58) | (57) | |||||||||||||||||||||
| Unamortized debt issuance costs | (137) | (114) | |||||||||||||||||||||
| Total Long-term Debt | 18,894 | 16,503 | |||||||||||||||||||||
| Less current portion of Long-term Debt | 904 | 551 | |||||||||||||||||||||
| Total Long-term Debt, noncurrent | $ | 17,990 | $ | 15,952 | |||||||||||||||||||
| PPL Electric | |||||||||||||||||||||||
| Senior Secured Notes/First Mortgage Bonds (a)(b) | 4.72 | % | 2027 - 2055 | $ | 5,799 | $ | 5,299 | ||||||||||||||||
| Total Long-term Debt Before Adjustments | 5,799 | 5,299 | |||||||||||||||||||||
| Unamortized discount | (45) | (42) | |||||||||||||||||||||
| Unamortized debt issuance costs | (47) | (43) | |||||||||||||||||||||
| Total Long-term Debt | 5,707 | 5,214 | |||||||||||||||||||||
| Less current portion of Long-term Debt | — | — | |||||||||||||||||||||
| Total Long-term Debt, noncurrent | $ | 5,707 | $ | 5,214 | |||||||||||||||||||
| LG&E | |||||||||||||||||||||||
| Senior Secured Notes/First Mortgage Bonds (a)(c) | 4.52 | % | 2026 - 2055 | $ | 2,889 | $ | 2,489 | ||||||||||||||||
| Total Long-term Debt Before Adjustments | 2,889 | 2,489 | |||||||||||||||||||||
| Unamortized discount | (4) | (4) | |||||||||||||||||||||
| Unamortized debt issuance costs | (20) | (14) | |||||||||||||||||||||
| Total Long-term Debt | 2,865 | 2,471 | |||||||||||||||||||||
| Less current portion of Long-term Debt | 90 | 300 | |||||||||||||||||||||
| Total Long-term Debt, noncurrent | $ | 2,775 | $ | 2,171 | |||||||||||||||||||
| KU | |||||||||||||||||||||||
| Senior Secured Notes/First Mortgage Bonds (a)(c) | 4.60 | % | 2026 - 2055 | $ | 3,539 | $ | 3,089 | ||||||||||||||||
| Total Long-term Debt Before Adjustments | 3,539 | 3,089 | |||||||||||||||||||||
| Unamortized premium | 4 | 4 | |||||||||||||||||||||
| Unamortized discount | (8) | (8) | |||||||||||||||||||||
| Unamortized debt issuance costs | (25) | (19) | |||||||||||||||||||||
| Total Long-term Debt | 3,510 | 3,066 | |||||||||||||||||||||
| Less current portion of Long-term Debt | 164 | 250 | |||||||||||||||||||||
| Total Long-term Debt, noncurrent | $ | 3,346 | $ | 2,816 | |||||||||||||||||||
(a)Includes PPL Electric's senior secured and first mortgage bonds that are secured by the lien of PPL Electric's 2001 Mortgage Indenture, which covers substantially all of PPL Electric's tangible distribution properties and certain of its tangible transmission properties located in Pennsylvania, subject to certain exceptions and exclusions. The carrying value of PPL Electric's property, plant and equipment was approximately $14.6 billion and $13.3 billion at December 31, 2025 and 2024.
Includes LG&E's first mortgage bonds that are secured by the lien of the LG&E 2010 Mortgage Indenture which creates a lien, subject to certain exceptions and exclusions, on substantially all of LG&E's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity and the storage and distribution of natural gas. The aggregate carrying value of the property subject to the lien was $6.4 billion and $6.0 billion at December 31, 2025 and 2024.
Includes KU's first mortgage bonds that are secured by the lien of the KU 2010 Mortgage Indenture which creates a lien, subject to certain exceptions and exclusions, on substantially all of KU's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity. The aggregate carrying value of the property subject to the lien was $8.0 billion and $7.5 billion at December 31, 2025 and 2024.
(b)Includes PPL Electric's series of senior secured bonds that secure its obligations to make payments with respect to each series of Pollution Control Bonds that were issued by the LCIDA on behalf of PPL Electric. These senior secured bonds were issued in the same principal amount, contain payment and redemption provisions that correspond to and bear the same interest rate as such Pollution Control Bonds. These senior secured bonds were issued under PPL Electric's 2001 Mortgage Indenture and are secured as noted in (a) above. The tax-exempt revenue bonds are subject to mandatory redemption upon determination that the interest rate on the bonds would be included in the holders' gross income for federal tax purposes.
(c)Includes LG&E's and KU's series of first mortgage bonds that were issued to the respective trustees of tax-exempt revenue bonds to secure its respective obligations to make payments with respect to each series of bonds. The first mortgage bonds were issued in the same principal amounts, contain payment and redemption provisions that correspond to and bear the same interest rate as such tax-exempt revenue bonds. These first mortgage bonds were issued under the LG&E 2010 Mortgage Indenture and the KU 2010 Mortgage Indenture and are secured as noted in (a) above. The related tax-exempt revenue bonds were issued by various governmental entities, principally counties in Kentucky, on behalf of LG&E and KU. The related revenue bond documents allow LG&E and KU to convert the interest rate mode on the bonds from time to time to a commercial paper rate, daily rate, weekly rate, term rate of at least one year or, in some cases, an auction rate or a SOFR index rate. At December 31, 2025, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a term rate mode totaled $894 million for PPL, comprised of $538 million and $356 million for LG&E and KU. At December 31, 2025, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a variable rate mode totaled $66 million and $33 million for LG&E and KU. These variable rate tax-exempt revenue bonds are subject to tender for purchase by LG&E and KU at the option of the holder and to mandatory tender for purchase by LG&E and KU upon the occurrence of certain events.
(d)The table reflects principal maturities only, based on stated maturities, sinking fund requirements, or earlier put dates, and the weighted-average rates as of December 31, 2025.
The aggregate maturities of long-term debt, based on sinking fund requirements, stated maturities or earlier put dates, for the periods 2026 through 2030 and thereafter are as follows:
PPL (a) | PPL Electric | LG&E | KU | ||||||||||||||||||||
| 2026 | $ | 904 | $ | — | $ | 90 | $ | 164 | |||||||||||||||
| 2027 | 428 | 108 | 260 | 60 | |||||||||||||||||||
| 2028 | 1,350 | — | — | — | |||||||||||||||||||
| 2029 | 116 | 116 | — | — | |||||||||||||||||||
| 2030 | 2,181 | — | — | — | |||||||||||||||||||
| Thereafter | 14,110 | 5,575 | 2,539 | 3,315 | |||||||||||||||||||
| Total | $ | 19,089 | $ | 5,799 | $ | 2,889 | $ | 3,539 | |||||||||||||||
(a)Reduced by $84 million of repurchased affiliate bonds as of December 31, 2025. See "Open Market Repurchase Program" below for additional information.
Exchangeable Notes
(PPL)
In November 2025, PPL Capital Funding issued $1.15 billion of 3.000% Exchangeable Senior Notes due 2030 (the Notes). PPL Capital Funding received proceeds of $1.14 billion, net of underwriting fees, which were used to repay short-term debt and for general corporate purposes. The Notes are senior unsecured obligations of PPL Capital Funding, fully and unconditionally guaranteed on a senior unsecured basis by PPL. The Notes are scheduled to mature on December 1, 2030, unless earlier exchanged, redeemed or repurchased.
The Notes are exchangeable at an initial exchange rate of approximately 23.44 shares of PPL's common stock per $1,000 principal amount (equivalent to an initial exchange price of approximately $42.66 per share of common stock). The initial exchange rate is subject to adjustment, as provided in the indenture for anti-dilutive events and fundamental change and redemption provisions. Upon exchange of the Notes, PPL Capital Funding expects to redeem the aggregate principal amount of the Notes in cash. PPL Capital Funding will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at PPL Capital Funding's election, in respect of the remainder, if any, of its exchange obligation in excess of the aggregate principal amount of the Notes being exchanged. Prior to the close of business on the business day immediately preceding September 1, 2030, the Notes will be exchangeable at the option of the noteholders only upon the satisfaction of specified conditions and during certain periods described in the indenture pursuant to which the Notes were issued. On or after the close of business on the business day immediately preceding September 1, 2030 until the maturity date, the Notes will be exchangeable at the option of the noteholders at any time regardless of these conditions or periods.
PPL Capital Funding may not redeem the Notes prior to December 5, 2028. PPL Capital Funding may redeem for cash all or any portion of the Notes, at its option, on or after December 5, 2028, if the last reported sale price of the common stock has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive), during any 30 consecutive trading day period, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes.
Subject to certain conditions, holders of the Notes will have the right to require PPL Capital Funding to repurchase all or a portion of their Notes upon the occurrence of a fundamental change, as defined in the indenture pursuant to which the Notes were issued at a repurchase price of 100% of their principal amount plus any accrued and unpaid interest. In connection with certain corporate events or if PPL Capital Funding calls any Notes for redemption, PPL Capital Funding will, under certain circumstances, increase the exchange rate for noteholders who elect to exchange their Notes in connection with any such corporate event or exchange their Notes called for redemption.
Open Market Repurchase Program
In the fourth quarter of 2025, PPL repurchased $84 million of affiliate bonds that included $36 million of PPL Electric bonds, $8 million of LG&E bonds and $40 million of KU bonds. On a consolidated basis, PPL's repurchases have been accounted for as debt extinguishments and resulted in a pre-tax gain of $18 million, net of unamortized debt issuance fees and discounts, which has been recorded as a reduction of Interest Expense on PPL's Consolidated Statements of Income. Intercompany interest expense related to the repurchased bonds was immaterial for the year ended December 31, 2025.
First Mortgage Bond Issuances
(PPL and PPL Electric)
In August 2025, PPL Electric issued $500 million of 5.55% First Mortgage Bonds due 2055. PPL Electric received proceeds of $491 million, net of discounts and underwriting fees, to be used to repay short-term debt and for other general corporate purposes.
(PPL and LG&E)
In August 2025, LG&E issued $700 million of 5.85% First Mortgage Bonds due 2055. LG&E received proceeds of $694 million, net of discounts and underwriting fees, to be used to repay short-term debt, the current portion of certain long-term debt and for other general corporate purposes.
(PPL and KU)
In August 2025, KU issued $700 million of 5.85% First Mortgage Bonds due 2055. KU received proceeds of $694 million, net of discounts and underwriting fees, to be used to repay short-term debt, the current portion of certain long-term debt and for other general corporate purposes.
(PPL Electric, LG&E and KU)
See Note 13 for additional information related to intercompany borrowings.
Legal Separateness (All Registrants)
The subsidiaries of PPL are separate legal entities. PPL's subsidiaries are not liable for the debts of PPL. Accordingly, creditors of PPL may not satisfy their debts from the assets of PPL's subsidiaries absent a specific contractual undertaking by a subsidiary to pay PPL's creditors or as required by applicable law or regulation. Similarly, other than PPL's guarantee of PPL Capital Funding's obligations, PPL is not liable for the debts of its subsidiaries, nor are its subsidiaries liable for the debts of one another. Accordingly, creditors of PPL's subsidiaries may not satisfy their debts from the assets of PPL or its other subsidiaries absent a specific contractual undertaking by PPL or its other subsidiaries to pay the creditors or as required by applicable law or regulation.
Similarly, the subsidiaries of PPL Electric are each separate legal entities. These subsidiaries are not liable for the debts of PPL Electric. Accordingly, creditors of PPL Electric may not satisfy its debts from the assets of its subsidiaries absent a specific contractual undertaking by a subsidiary to pay the creditors or as required by applicable law or regulation. Similarly, PPL Electric is not liable for the debts of its subsidiaries, nor are its subsidiaries liable for the debts of one another. Accordingly, creditors of these subsidiaries may not satisfy their debts from the assets of PPL Electric (or its other subsidiaries) absent a specific contractual undertaking by PPL Electric or any such other subsidiary to pay such creditors or as required by applicable law or regulation.
(PPL)
Equity Securities
ATM Program
In February 2025, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $2 billion of its common stock through an ATM Program, which may utilize an optional forward sales component. Each forward contract under the agreement must be settled within 24 months. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. As of December 31, 2025, PPL had entered into forward contracts to sell approximately 38.7 million shares of its common stock at a blended initial forward price of approximately $35.62 per share. The forward sale price may be adjusted based on changes in daily interest rates, for certain stock loan fees as determined by a third-party agent, and will be subject to predetermined reductions based on expected dividends. Each outstanding forward contract must be settled on or before dates ranging from December 30, 2025 to August 11, 2027. PPL may elect, at its discretion, to physically settle, net share settle or net cash settle the forward contracts. On December 29, 2025, PPL settled forward sale contracts with physical delivery of approximately 11.3 million shares of common stock for proceeds of approximately $394 million, net of issuance fees. At December 31, 2025, PPL could have settled the remaining forward sale contracts with physical delivery of approximately 27.4 million shares of common stock for proceeds of approximately $981 million. The forward contracts under the ATM program are classified as equity transactions.
Distributions and Related Restrictions
In November 2025, PPL declared its quarterly common stock dividend, payable January 2, 2026, at 27.25 cents per share (equivalent to $1.09 per annum). On February 20, 2026, PPL announced a quarterly common stock dividend of 28.50 cents per share, payable April 1, 2026, to shareowners of record as of March 10, 2026. Future dividends will be declared at the discretion of the Board of Directors and will depend upon future earnings, cash flows, financial and legal requirements and other factors.
Neither PPL Capital Funding nor PPL may declare or pay any cash dividend or distribution on its capital stock during any period in which PPL Capital Funding defers interest payments on its 2007 Series A Junior Subordinated Notes due 2067. At December 31, 2025, no interest payments were deferred.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2022 | Feb 17, 2023 | |
| 2019 | Feb 14, 2020 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.