By William Gullotti
Buffalo, N.Y., March 21 – Indiana Michigan Power Co. sold $500 million of 5.625% 30-year series P senior notes (A3/A-/A-) on Tuesday at a spread of 190 basis points over Treasuries to yield 5.627%, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
The notes feature a make-whole call at Treasuries plus 30 bps until Oct. 1, 2052 and a par call thereafter.
BofA Securities, Inc., Citigroup Global Markets Inc., PNC Capital Markets LLC and RBC Capital Markets, LLC were the joint bookrunning managers.
Proceeds will be used to repay all or some of the short-term advances, including those from affiliates used to repay $250 million of the company’s series J 3.2% senior notes that matured on March 15, 2023. As of March 17, affiliate advances totaled about $452 million.
The subsidiary of American Electric Power is based in Fort Wayne, Ind.
| Issuer: | Indiana Michigan Power Co.
|
| Amount: | $500 million
|
| Issue: | Series P senior notes
|
| Maturity: | April 1, 2053
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., PNC Capital Markets LLC and RBC Capital Markets, LLC
|
| Senior co-manager: | TD Securities (USA) LLC
|
| Co-manager: | C.L. King & Associates, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house counsel
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Coupon: | 5.625%
|
| Price: | 99.969
|
| Yield: | 5.627%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before Oct. 1, 2052, thereafter at par
|
| Trade date: | March 21
|
| Settlement date: | March 23
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Cusip: | 454889AV8
|
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