By William Gullotti
Buffalo, N.Y., May 31 – American Electric Power Co. Inc. sold $850 million 5.699% junior subordinated debentures due Aug. 15, 2025 (Baa3/BBB+/BBB-) at 99.552 in a remarketing on Wednesday, according to an FWP and a 424B5 filing with the Securities and Exchange Commission.
As previously reported, the debentures are a remarketing of the issuer’s 1.3% junior subordinated debentures, originally issued in August 2020 components of equity units, initially consisting of corporate units. Each corporate unit initially consisted of both a purchase contract obligating the holder to purchase common stock and a 1/20th undivided beneficial interest in a $1,000 principal amount of a debenture. The debentures are being remarketed on behalf of the corporate unitholders.
The notes priced at a spread of 155 basis points over Treasuries to yield 5.924%.
The notes are non-callable.
Proceeds will be used to purchase the Treasury portfolio, a portion of which will then be pledged to secure the purchase contract obligations of the corporate unitholders.
J.P. Morgan Securities LLC and Mizuho Securities USA LLC are the remarketing agents.
The public utility holding company is based in Columbus, Ohio.
| Issuer: | American Electric Power Co., Inc.
|
| Amount: | $850 million
|
| Issue: | Junior subordinated debentures
|
| Maturity: | Aug. 15, 2025
|
| Remarketing agents: | J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Simpson Thacher & Bartlett LLP and in-house counsel
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Coupon: | 5.699%
|
| Price: | 99.552
|
| Yield: | 5.924%
|
| Spread: | Treasuries plus 155 bps
|
| Calls: | Non-callable
|
| Trade date: | May 31
|
| Settlement date: | June 2
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Cusip: | 02557TAD1
|
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