By Aleesia Forni
Virginia Beach, March 23 – Southwestern Electric Power Co. priced $400 million of senior notes, series J, (Baa2/BBB/) due April 1, 2045 on Monday with a spread of 145 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.108 to yield 3.951%.
The notes sold at the tight end of the 145 bps to 150 bps over Treasuries guidance, tightened from initial talk set in the Treasuries plus 155 bps area.
The bookrunners were Mizuho Securities (USA) Inc., UBS Securities LLC, Citigroup Global Markets Inc. and Scotia Capital (USA) Inc.
Proceeds will be used for funding the company’s construction program and for other general corporate purposes relating to the company’s utility business.
The utility subsidiary of American Electric Power Co. is based in Columbus, Ohio.
| Issuer: | Southwestern Electric Power Co.
|
| Amount: | $400 million
|
| Description: | Senior notes, series J
|
| Maturity: | April 1, 2045
|
| Bookrunners: | Mizuho Securities (USA) Inc., UBS Securities LLC, Citigroup Global Markets Inc., Scotia Capital (USA) Inc.
|
| Co-managers: | BBVA Securities, Huntington Investment Co., SMBC Nikko Securities America Inc.
|
| Coupon: | 3.9%
|
| Price: | 99.108
|
| Yield: | 3.951%
|
| Spread: | 145 bps over Treasuries
|
| Make-whole call: | 25 bps prior to Oct. 1, 2044, then callable at par
|
| Trade date: | March 23
|
| Settlement date: | March 26
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | 145 bps to 150 bps over Treasuries, tightened from 155 bps area
|
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