By Cristal Cody
Tupelo, Miss., June 10 – AEP Transmission Co. sold $350 million of 3.8% 30-year senior notes (A2/A-/A) on Monday at a spread of Treasuries plus 120 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.414 to yield 3.833%.
BofA Securities, Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes relating to the company’s utility business, including construction costs, and to repay outstanding advances from affiliates. AEP Transmission estimates its construction costs in 2019 will be about $1.59 billion. As of June 5, the company had about $358 million in advances from affiliates outstanding.
Columbus, Ohio-based AEP Transmission is an electric utility and a division of American Electric Power Co., Inc.
| Issuer: | AEP Transmission Co.
|
| Amount: | $350 million
|
| Maturity: | June 15, 2049
|
| Description: | Series K senior notes
|
| Bookrunners: | BofA Securities, Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.8%
|
| Price: | 99.414
|
| Yield: | 3.833%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call before Dec. 15, 2048 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | June 10
|
| Settlement date: | June 12
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
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