By Andrea Heisinger
New York, March 4 - Appalachian Power Co. sold $350 million of 7.95% senior notes due Jan. 15, 2020 Wednesday to yield Treasuries plus 500 basis points, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The notes priced in line with talk that was in the 500 bps area, the source said.
The notes (Baa2/BBB/BBB+) priced at 99.551 to yield 8.015% with a make-whole call at Treasuries plus 50 bps.
Bookrunners were Goldman Sachs & Co., RBS Greenwich Capital and Wachovia Capital Markets LLC.
Co-managers were Calyon Securities, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments.
Proceeds will be used for general corporate purposes relating to the utility business.
The electric company is based in Columbus, Ohio.
| Issuer: | Appalachian Power Co.
|
| Issue: | Senior notes
|
| Amount: | $350 million
|
| Maturity: | Jan. 15, 2020
|
| Bookrunners: | Goldman Sachs & Co., RBS Greenwich Capital, Wachovia Capital Markets LLC
|
| Co-managers: | Calyon Securities, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments
|
| Coupon: | 7.95%
|
| Price: | 99.551
|
| Yield: | 8.015%
|
| Spread: | Treasuries plus 500 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | March 4
|
| Settlement date: | March 9
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 500 bps area
|
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