Published on 11/8/2017 in the Prospect News Investment Grade Daily.
New Issue: American Electric Power prices $1 billion senior notes due 2020, 2027
By Cristal Cody
Tupelo, Miss., Nov. 8 – American Electric Power Co., Inc. sold $1 billion of senior notes (Baa1/BBB+) in two tranches on Wednesday, according to a 424B2 filing with the Securities and Exchange Commission.
The company priced $500 million of 2.15% three-year series G notes at 99.867 to yield 2.196%, or a spread of Treasuries plus 45 basis points.
American Electric Power sold $500 million of 3.2% 10-year series H notes at 99.83 to yield 3.22%, or a Treasuries plus 90 bps spread.
Bookrunners were J.P. Morgan Securities LLC, Scotia Capital (USA) Inc., Wells Fargo Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey, Inc. and Huntington Investment Co.
American Electric Power is a Columbus, Ohio-based electricity distributor for more than 5 million customers in 11 states.
| Issuer: | American Electric Power Co., Inc.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Scotia Capital (USA) Inc., Wells Fargo Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey, Inc. and Huntington Investment Co.
|
| Co-manager: | Fifth Third Securities, Inc.
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 13, 2020
|
| Coupon: | 2.15%
|
| Price: | 99.867
|
| Yield: | 2.196%
|
| Spread: | Treasuries plus 45 bps
|
| Call features: | Non-callable
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 13, 2027
|
| Coupon: | 3.2%
|
| Price: | 99.83
|
| Yield: | 3.22%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Aug. 13, 2027; thereafter at par
|
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