By Cristal Cody
Tupelo, Miss., March 30 – AEP Transmission Co. LLC sold $525 million of 3.65% 30-year senior notes (A2/A-/A) on Monday at a spread of Treasuries plus 235 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 275 bps to 287.5 bps area.
The notes priced at 99.964 to yield 3.652%.
Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., MUFG, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used for general corporate purposes relating to AEP’s utility business, including construction costs and to repay outstanding advances from affiliates. AEP estimates that construction costs in 2020 will be about $1.43 billion. As of Friday, the company had roughly $355 million outstanding in advances from affiliates.
Columbus, Ohio-based AEP Transmission is an electric utility and a division of American Electric Power Co., Inc.
| Issuer: | AEP Transmission Co. LLC
|
| Amount: | $525 million
|
| Maturity: | April 1, 2050
|
| Description: | Series M senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., MUFG, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 3.65%
|
| Price: | 99.964
|
| Yield: | 3.652%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole call before Oct. 1, 2049 at Treasuries plus 40 bps; thereafter at par
|
| Trade date: | March 30
|
| Settlement date: | April 1
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 275 bps-287.5 bps area
|
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