Published on 3/3/2020 in the Prospect News Investment Grade Daily.
New Issue: American Electric Power prices $800 million senior notes in two parts
By Cristal Cody
Tupelo, Miss., March 3 – American Electric Power Co., Inc. priced $800 million of senior notes (Baa1/BBB+) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $400 million of 2.3% 10-year notes at 99.956 to yield 2.305%. The notes were sold at a spread of 130 basis points over Treasuries.
A $400 million tranche of 3.25% 30-year notes priced at 99.829 to yield 3.259%, or a Treasuries plus 165 bps spread.
BofA Securities, Inc., BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
American Electric Power is a Columbus, Ohio-based electricity provider.
| Issuer: | American Electric Power Co., Inc
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Trade date: | March 3
|
| Settlement date: | March 5
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2030
|
| Description: | Series K senior notes
|
| Coupon: | 2.3%
|
| Price: | 99.956
|
| Yield: | 2.305%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call before Dec. 1, 2029 at Treasuries plus 20 bps; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2050
|
| Description: | Series L senior notes
|
| Coupon: | 3.25%
|
| Price: | 99.829
|
| Yield: | 3.259%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call before Sept. 1, 2049 at Treasuries plus 25 bps; thereafter at par
|
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