By William Gullotti
Buffalo, N.Y., March 28 – Southwestern Electric Power Co. priced $350 million of 5.3% 10-year series P senior notes (Baa2/A-/BBB+) with a spread of 178 basis points over Treasuries on Tuesday, according to an FWP filing a 424B5 filing with the Securities and Exchange Commission.
The notes priced at 99.869 to yield 5.317%.
The notes feature a make-whole call at Treasuries plus 30 bps until Jan. 1, 2033, followed by a par call.
Goldman Sachs & Co. LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are the joint bookrunning managers for the offering.
Proceeds will be used for general corporate purposes. This may include funding the company’s construction program, repaying advances from affiliates and replenishing working capital. As of March 23, approximately $369 million in advances were outstanding.
Southwestern Electric Power is a Columbus, Ohio-based electric power company.
| Issuer: | Southwestern Electric Power Co.
|
| Amount: | $350 million
|
| Issue: | Series P senior notes
|
| Maturity: | April 1, 2033
|
| Bookrunners: | Goldman Sachs & Co. LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
|
| Co-manager: | Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house counsel
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Coupon: | 5.3%
|
| Price: | 99.869
|
| Yield: | 5.317%
|
| Spread: | Treasuries plus 178 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Jan. 1, 2033, then a par call
|
| Trade date: | March 28
|
| Settlement date: | March 30
|
| Ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Cusip: | 845437BU5
|
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