By William Gullotti
Buffalo, N.Y., May 22 – AEP Texas Inc. priced $450 million 5.4% series M senior notes due 2033 (Baa2/A-/BBB+) at a spread of 172 basis points over Treasuries on Monday, according to an FWP and a 424B5 filed with the Securities and Exchange Commission.
The notes priced at 99.838 to yield 5.421%.
The notes feature a make-whole call at Treasuries plus 30 bps until March 1, 2033, followed by a par call.
BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Scotia Capital (USA) Inc. are the joint bookrunning managers.
Proceeds will be used for general corporate purposes, which may include funding construction, repaying advances from affiliates and replenishing working capital. As of May 17, the company had approximately $458 million in outstanding advances from its affiliates.
AEP Texas is a Corpus Christi, Tex.-based electric company.
| Issuer: | AEP Texas Inc.
|
| Amount: | $450 million
|
| Issue: | Senior notes, series M
|
| Maturity: | June 1, 2033
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Scotia Capital (USA) Inc.
|
| Co-managers: | BOK Financial Securities, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house counsel
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Coupon: | 5.4%
|
| Price: | 99.838
|
| Yield: | 5.421%
|
| Spread: | Treasuries plus 172 bps
|
| Call features: | Make-whole before March 1, 2033 at Treasuries plus 30 bps; thereafter at par
|
| Trade date: | May 22
|
| Settlement date: | May 24
|
| Expected ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Cusip: | 00108WAR1
|
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