By Rebecca Melvin
New York, Sept. 9 – AEP Transmission Co. LLC sold $350 million 3.15% 30-year senior notes (A2/A-/A) at 99.269 to yield 3.188%, or a spread of Treasuries plus 110 basis points, according to a pricing term sheet filed with the Securities and Exchange Commission.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Scotiabank are joint bookrunning managers of the notes.
The proceeds will be used for general corporate purposes relating to the utility business, including construction costs, and used to repay outstanding advances from affiliates. AEP estimates that its construction costs in 2019 will be about $1.59 billion. As of Sept. 3, the company had about $157 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: | Sept. 15, 2049
|
| Description: | Series L senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Scotiabank
|
| Coupon: | 3.15%
|
| Price: | 99.269
|
| Yield: | 3.188%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before March 15, 2049 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
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