New Issue: Southwestern Electric sells $400 million 2.75% 10-year notes at 118 bps spread

By Cristal Cody

Eureka Springs, Ark., Sept. 26 – Southwestern Electric Power Co. priced $400 million of 2.75% 10-year series K senior notes with a spread of 118 basis points over Treasuries on Monday, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa2/BBB+) priced at 99.896 to yield 2.762%.

The bookrunners were Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC and KeyBanc Capital Markets Inc.

Proceeds will be used for general corporate purposes relating to the company’s utility business, which may include funding a construction program, repaying advances from affiliates, replenishing working capital and paying at maturity $250 million outstanding of 5.55% series E senior notes due Jan. 15, 2017.

Southwestern Electric Power is a Columbus, Ohio-based electric power company.

Issuer:	Southwestern Electric Power Co.
Amount:	$400 million
Description:	Senior notes
Maturity:	Oct. 1, 2026
Bookrunners:	Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc.
Co-managers:	BOK Financial Securities, Inc., PNC Capital Markets LLC
Coupon:	2.75%
Price:	99.896
Yield:	2.762%
Spread:	Treasuries plus 118 bps
Call features:	Make-whole call before July 1, 2026 at Treasuries plus 20 bps; on or after July 1, 2026 at par
Trade date:	Sept. 26
Settlement date:	Sept. 29
Ratings:	Moody’s: Baa2
	S&P: BBB+
Distribution:	SEC registered

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