By Cristal Cody
Tupelo, Miss., Nov. 18 – American Electric Power Co., Inc. priced $1.5 billion of senior notes (Baa2/BBB+/BBB+) in three tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $600 million of three-year floating-rate notes at par to yield Libor plus 48 basis points.
A $450 million tranche of 0.75% three-year notes priced at 99.916 to yield 0.779%, or a spread of 55 bps over Treasuries.
American Electric sold $450 million of 1% five-year notes at 99.769 to yield 1.048%, or a Treasuries plus 65 bps spread.
BofA Securities Inc., MUFG, Scotia Capital (USA) Inc., TD Securities (USA) LLC, BNY Mellon Capital Markets LLC, Goldman Sachs & Co. LLC and Truist Securities Inc. were the bookrunners.
Proceeds will be used to repay $1 billion of debt under a 364-day term loan maturing March 22, 2021 and for general corporate purposes.
American Electric Power is a Columbus, Ohio-based electricity provider.
| Issuer: | American Electric Power Co., Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., MUFG, Scotia Capital (USA) Inc., TD Securities (USA) LLC, BNY Mellon Capital Markets LLC, Goldman Sachs & Co. LLC and Truist Securities Inc.
|
| Co-manager: | Fifth Third Securities Inc.
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 20
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $600 million
|
| Description: | Series A senior floating-rate notes
|
| Maturity: | Nov. 1, 2023
|
| Coupon: | Libor plus 48 bps
|
| Price: | Par
|
| Yield: | Libor plus 48 bps
|
| Call features: | On or after Nov. 20, 2021 at par
|
|
|
| Three-year notes
|
| Amount: | $450 million
|
| Description: | Series M senior fixed-rate notes
|
| Maturity: | Nov. 1, 2023
|
| Coupon: | 0.75%
|
| Price: | 99.916
|
| Yield: | 0.779%
|
| Spread: | Treasuries plus 55 bps
|
| Call features: | On or after Nov. 20, 2021 at par
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Description: | Series N senior fixed-rate notes
|
| Maturity: | Nov. 1, 2025
|
| Coupon: | 1%
|
| Price: | 99.769
|
| Yield: | 1.048%
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Make-whole call before Oct. 1, 2025 at Treasuries plus 10 bps; thereafter at par
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
