By Taylor Fox and Cristal Cody
New York, March 9 – Appalachian Power Co. priced $400 million of 2.7% 10-year senior notes, series AA (Baa1/A-/A-) on Tuesday at 99.615% to yield 2.744%, or a spread of 120 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes were expected in the Treasuries plus 125 bps area, according to a market source earlier in the day.
The notes have an optional make-whole call before Jan. 1, 2031 at Treasuries plus 20 bps which converts to a par call after that date.
Barclays, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc. and U.S. Bancorp Investments Inc. are the bookrunners of the deal.
The proceeds will be used to repay $350 million aggregated principal amount of series T, 4.6% senior notes maturing on March 30, to redeem $17.5 million aggregate principal amount of the Russell County Pollution Control Bond, and for general corporate purposes, according to Fitch Ratings.
The electric utility is based in Columbus, Ohio.
| Issuer: | Appalachian Power Co.
|
| Amount: | $400 million
|
| Description: | Series AA senior notes
|
| Maturity: | April 1, 2031
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | Huntington Securities, Inc., AmeriVet Securities, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Coupon: | 2.7%
|
| Price: | 99.615
|
| Yield: | 2.744%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Jan. 1, 2031; thereafter at par
|
| Trade date: | March 9
|
| Settlement date: | March 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Fitch: A-
|
| Talk: | Treasuries plus 125 bps area
|
| Distribution: | SEC registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
