By Cristal Cody
Tupelo, Miss., June 26 – Indiana Michigan Power Co. priced $300 million of 3.75% 30-year series L fixed-rate senior notes (Baa1/A-/) on Monday at 99.304 to yield 3.789%, a spread of Treasuries plus 110 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of guidance that had been set in the Treasuries plus 115 bps area, plus or minus 5 bps.
Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc. and UBS Securities LLC were the bookrunners.
Proceeds will be used for the company’s construction program and other general corporate purposes.
The subsidiary of American Electric Power is based in Fort Wayne, Ind.
| Issuer: | Indiana Michigan Power Co.
|
| Amount: | $300 million
|
| Description: | Senior notes
|
| Maturity: | July 1, 2047
|
| Bookrunners: | Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc. and UBS Securities LLC
|
| Coupon: | 3.75%
|
| Price: | 99.304
|
| Yield: | 3.789%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before Jan. 1, 2047 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | June 26
|
| Settlement date: | June 29
|
| Ratings: | Moody's: | Baa1
|
| S&P: | A-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 115 bps area, plus or minus 5 bps
|
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