New Issue: American Electric Power sells $1 billion of notes due 2027, 2032

Chicago, Oct. 31 – American Electric Power Co., Inc. sold $1 billion of senior notes in two $500 million tranches (Baa2/BBB+/BBB) on Monday, according to an FWP filing with the Securities and Exchange Commission.

The company priced 5.75% notes with a five-year tenor at 99.735 to yield 5.812%, or at Treasuries plus 155 basis points.

The second part of the deal, a 10-year tranche, priced with a 5.95% coupon at 99.317 to yield 6.042%, or at Treasuries plus 195 bps.

Both notes have make-whole calls followed by par calls. For the five-year notes the premium is Treasuries plus 25 bps until one month before the maturity date. The 10-year notes have a Treasuries plus 30 bps premium and then a par call date three months before maturity.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., and SMBC Nikko Securities America, Inc. led the SEC-registered sale.

Proceeds will be used for general corporate purposes, including the repayment of short-term debt.

American Electric Power is a Columbus, Ohio-based electricity provider.

Issuer:	American Electric Power Co., Inc.
Amount:	$1 billion
Issue:	Senior notes
Bookrunners:	Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., and SMBC Nikko Securities America, Inc.
Co-managers:	Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Academy Securities, Inc. and Siebert Williams Shank & Co., LLC
Trustee:	Bank of New York Mellon Trust Co., NA
Counsel to issuer:	In-house counsel
Counsel to underwriters:	Hunton Andrews Kurth LLP
Trade date:	Oct. 31
Settlement date:	Nov. 2
Ratings:	Moody’s: Baa2
	S&P: BBB+
	Fitch: BBB
Distribution:	SEC registered
Five-year notes
Amount:	$500 million
Issue:	Senior notes, series O
Maturity:	Nov. 1, 2027
Coupon:	5.75%
Price:	99.735
Yield:	5.812%
Spread:	Treasuries plus 155 bps
Call features:	Make-whole call at Treasuries plus 25 bps until Oct. 1, 2027; thereafter at par
Cusip:	025537AV3
10-year notes
Amount:	$500 million
Issue:	Senior notes, series P
Maturity:	Nov. 1, 2032
Coupon:	5.95%
Price:	99.317
Yield:	6.042%
Spread:	Treasuries plus 195 bps
Call features:	Make-whole call at Treasuries plus 30 bps until Aug. 1, 2032; thereafter at par
Cusip:	025537AW1

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