Published on 12/6/2023 in the Prospect News Investment Grade Daily.
New Issue: American Electric Power prices $1 billion 5.2% five-year notes at 112.5 bps spread
By Wendy Van Sickle
Columbus, Ohio, Dec. 6 – American Electric Power Co., Inc. priced $1 billion of 5.2% notes due Jan. 15, 2029 (Baa2/BBB+/BBB) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.841 to yield 5.234%, or at Treasuries plus 112.5 basis points.
The notes are callable with a Treasuries plus 20 bps make-whole premium. Starting on Dec. 15, 2028, the notes will be callable at par.
Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the joint bookrunners.
The proceeds will be used to repay at maturity all or a portion of the $805 million aggregate principal amount of 2.031% junior subordinated debentures maturing on March 15, 2024. In the interim, the company may use the net proceeds 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.
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Amount: | $1 billion
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Issue: | Senior notes, series R
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Maturity: | Jan. 15, 2029
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Bookrunners: | Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
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Co-managers: | Fifth Third Securities, Inc., Huntington Securities, Inc., CAVU Securities LLC, Drexel Hamilton, LLC, Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC.
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Trustee: | Bank of New York Mellon Trust Co., NA
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Counsel to issuer: | In-house counsel
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Counsel to underwriters: | Hunton Andrews Kurth LLP
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Coupon: | 5.2%
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Price: | 99.841
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Yield: | 5.234%
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Spread: | Treasuries plus 112.5 bps
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Call features: | Make-whole call at Treasuries plus 20 bps until Dec. 15, 2028; thereafter at par
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Trade date: | Dec. 6
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Settlement date: | Dec. 8
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Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB
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Distribution: | SEC registered
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Cusip: | 025537AY7
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