By Andrea Heisinger
New York, Nov. 28 - American Electric Power Co., Inc. on Wednesday sold $850 million of senior notes (Baa2/BBB-/BBB) in two tranches, a market source said.
A $550 million tranche of 1.65% five-year notes priced at 99.884 to yield 1.674% with a spread of Treasuries plus 105 bps. There is a make-whole call at Treasuries plus 20 bps until Nov. 25, 2017.
A$300 million tranche of 2.95% 10-year notes sold at 99.801 to yield 2.973% with a spread of Treasuries plus 135 bps. The tranche has a make-whole call at Treasuries plus 25 bps until Sept. 15, 2022.
Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the active bookrunners. Passive bookrunners were BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and RBS Securities Inc.
Proceeds will be used for general corporate purposes, including repayment of short-term debt and redemption of $242.78 million of 5.25% notes, series D, due June 1, 2015, and $315 million of 8.75% junior subordinated debentures due March 1, 2063.
The electric utility is based in Columbus, Ohio.
| Issuer: | American Electric Power Co., Inc.
|
| Issue: | Senior notes
|
| Amount: | $850 million
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC (active), BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., RBS Securities Inc. (passive)
|
| Trade date: | Nov. 28
|
| Settlement date: | Dec. 3
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | Dec. 15, 2017
|
| Coupon: | 1.65%
|
| Price: | 99.884
|
| Yield: | 1.674%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Nov. 15, 2017, par call after
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Dec. 15, 2022
|
| Coupon: | 2.95%
|
| Price: | 99.801
|
| Yield: | 2.973%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to Sept. 15, 2022, par call after
|
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