By Rebecca Melvin and Cristal Cody
Concord, N.H., Jan. 4 – American Electric Power Co. Inc. sold $805 million 2.031% junior subordinated debentures due March 15, 2024 (Baa3/BBB+/BBB-) at 100.895 on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The debentures are a remarketing of the issuer’s 3.4% junior subordinated debentures issued in March 2019 as a component of AEP's equity units. The company is conducting the remarketing on behalf of holders of the corporate units and will not directly receive any proceeds from the transaction. Following the remarketing, the notes will be designated as the 2.031% junior subordinated debentures due 2024.
The notes have a reoffer yield of 1.614% for a spread to the benchmark Treasury of 85 basis points. That compared to price talk for a yield in the 120 bps area over Treasuries.
The notes are not callable at the issuer’s option prior to maturity.
Barclays and Wells Fargo Securities LLC are the remarketing agents.
The public utility holding company is based in Columbus, Ohio.
| Issuer: | American Electric Power Co., Inc.
|
| Amount: | $805 million
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| Issue: | Junior subordinated debentures
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| Maturity: | March 15, 2024
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| Remarketing agents: | Barclays and Wells Fargo Securities LLC
|
| Coupon: | 2.031%
|
| Price: | 100.895
|
| Yield: | 1.614%
|
| Spread: | Treasuries plus 85 bps
|
| Calls: | Non-callable
|
| Trade date: | Jan. 4
|
| Settlement date: | Jan. 6
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 120 bps area
|
| Cusip: | 025537AK7
|
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