Chicago, Aug. 11 – American Electric Power Co. Inc. priced $750 million, or 15 million, three-year $50-par equity units after the market close on Tuesday with a 6.125% dividend and a threshold appreciation premium of 20%, according to a press release.
Price talk was for a dividend of 6.125% to 6.625% and a threshold appreciation premium of 17.5% to 22.5%, according to a market source.
J.P. Morgan Securities LLC and Mizuho Securities USA Inc. are joint active bookrunners for the registered offering, which carries a greenshoe of $100 million, or 2 million units, according to a 424B5 filing with the Securities and Exchange Commission.
The equity units consist of a common stock forward purchase contract and a 1/20 ownership interest in a par of $1,000 junior subordinated debenture due 2025.
The units are non-callable. There is takeover and dividend protection.
AEP plans to apply to list the securities on the New York Stock Exchange under the symbol “AEPPrC.”
Net proceeds are expected to be $732 million and will be used to help fund the company’s capital expenditure plans, to repay debt and for other corporate purposes.
American Electric Power is a Columbus, Ohio-based energy infrastructure company.
| Issuer: | American Electric Power Co. Inc.
|
| Securities: | Equity units consisting of common stock forward purchase contract and a 1/20 ownership interest in a par of $1,000 junior subordinated debenture due 2025
|
| Amount: | $750 million, or 15 million units
|
| Greenshoe: | $100 million, or 2 million units
|
| Purchase contract maturity: | Aug. 15, 2023
|
| Bookrunners: | J.P. Morgan Securities LLC and Mizuho Securities USA Inc.
|
| Distribution rate: | 6.125%
|
| Price: | $50
|
| Appreciation premium: | 20%
|
| Appreciation price: | $99.95
|
| Call options: | None
|
| Put options: | None
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| Pricing date: | Aug. 11
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| Settlement date: | Aug. 14
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| Distribution: | Registered
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| Talk: | Dividend of 6.125% to 6.625% and a threshold appreciation premium of 17.5% to 22.5%
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| Stock symbol: | NYSE: AEP
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| Equity unit symbol: | NYSE: AEPPrC
|
| Stock price: | $83.29 at market close Aug. 11
|
| Market capitalization: | $41.32 billion
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