https://www.businesswire.com/news/home/20250629785423/en/Pembina-Pipeline-Corporation-Announces-Commencement-of-Consent-and-Proxy-Solicitation-Process-for-4.80-Fixed-to-Fixed-Rate-Subordinated-Notes-Series-1
Thank you.
PPL is asking bond holders of its Series I notes to approve an exchange provision into Series III notes. The terms of the new notes are exactly the same, except they cannot be redeemed for preferred shares (instead of cash) in the case of certain events, such as bankruptcy of the company. From the company: The absence of provisions for delivery of preferred shares upon the occurrence of certain bankruptcy and related events in the Series 3 Notes will ensure that the holders of Series 3 Notes will rank equally in right of payment with the holders of the outstanding 5.95% Fixed-to-Fixed Rate Subordinated Notes, Series 2 of the Company due June 6, 2055, including upon the occurrence of certain bankruptcy and related events.
For common shareholders of PPL, we would consider it a non-event. It provides some more protection to noteholders, but in a calamity common shares are not going to have much value anyway. We would be fine buying PPL today and would not let this item sway us in any way.