By Ronda Fears
Nashville, Tenn., June 6 - American Electric Power Co. Inc. sold $300 million of three-year mandatory convertibles in the upper DECS structure at par of 50 to yield 9.25% with a 20% initial conversion premium. The deal was advanced to price a day early, via joint bookrunners Goldman Sachs & Co., JPMorgan and Salomon Smith Barney.
The deal priced at the middle of guidance.
Columbus, Ohio-based energy firm also sold 16 million common shares at $40.90 each, fetching another $654.4 million.
Terms of the new deal are:
Issuer: American Electric Power Co. Inc.
Amount: $300 million
Greenshoe: $45 million
Lead managers: Goldman Sachs, JPMorgan and Salomon Smith Barney
Maturity date: Aug. 16, 2005
Dividend: 9.25%
Issue price: par, $50
Yield to maturity: 9.25%
Conversion premium: 20%
Conversion price: $40.90/$49.08
Conversion ratio: 1.0187/1.225
Call: non-callable
Expected ratings: Moody's: Baa1
| S&P: BBB+
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| Settlement date: | June 11
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