By Andrea Heisinger
New York, May 19 - Appalachian Power Co. priced $300 million of 3.4% five-year senior unsecured notes on Wednesday to yield Treasuries plus 137 basis points, a source who worked on the sale said.
The notes priced at the tight end of guidance in the 140 bps area, the source said, with a margin of plus or minus 3 bps.
The notes (Baa2/BBB/BBB) priced at 99.727 to yield 3.46%. There is a make-whole call of Treasuries plus 30 bps.
Bookrunners were Credit Suisse Securities, UBS Investment Bank and Wells Fargo Securities LLC.
Co-managers were BBVA Securities Inc., Citigroup Global Markets Inc. and Mitsubishi UFJ Securities.
Proceeds are being used for general corporate purposes, including funding a construction program, repaying advances from affiliates and replenishing working capital.
The subsidiary of American Electric Power is based in Charleston, W.Va.
| Issuer: | Appalachian Power Co.
|
| Issue: | Senior unsecured notes
|
| Amount: | $300 million
|
| Maturity: | May 24, 2015
|
| Bookrunners: | Credit Suisse Securities, UBS Investment Bank, Wells Fargo Securities LLC
|
| Co-managers: | BBVA Securities Inc., Citigroup Global Markets Inc., Mitsubishi UFJ Securities
|
| Coupon: | 3.4%
|
| Price: | 99.727
|
| Yield: | 3.46%
|
| Spread: | Treasuries plus 137 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Trade date: | May 19
|
| Settlement date: | May 24
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 140 bps area, plus or minus 3 bps
|
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