First Union, Salomon Smith Barney, Barclays Capital and West LB launched a $3.2 billion credit last week for Allentown, PA-based PPL Corporation. The financing includes a $1.2 billion synthetic lease and $1.1 billion of revolving credit facilities for the holding company, PPL Energy Supply. Each of the four leads has reportedly committed $300 million to the transaction. BANK ONE has signed on as the fifth agent with a $250 million commitment, and Union Bank of California committed $75 million prior to the bank meeting.
The credit also includes a $500 million non-recourse joint venture financing tied to the cash flows and credit profile of the company. The synthetic lease will reportedly support expansion of PPL's business including the construction of commerical power plants, while revolvers will be used primarily for commercial paper backup and letters of credit. Calls to PPL officials were not returned by press time.