PPL To Issue 80 Million Shares Of Common Equity, Goldman Maintains Buy

Goldman Sachs has published a research report on PPL Corporation PPL after the company announced today that it plans to issue 80 million shares of common equity and raised $750 million in covertible equity units. In the report, Goldman Sachs writes, "As highlighted in our March 2 note on PPL, the company announced the acquisition of a UK distribution utility, Central Networks, with plans to issue roughly $1.8 bn of common shares and $750 mn of equity units. With the acquisition of Central Networks closing last week, the equity raise announced by PPL is intended to reduce the bridge term loan taken out recently to fund the transaction. Our estimates for PPL do not yet incorporate the equity raise – we could see roughly 1%-2% of potential downside to our EPS forecasts of $2.75, $2.42, and $2.52 for 2011, 2012, and 2013 due to the financings (assuming a stock price of around $24-$25 per share, in line with its recent trading range)." Goldman Sachs maintains its Buy rating on PPL, which closed Friday at $25.87.