By Rebecca Melvin
New York, Jan. 5 – Ohio Power Co. priced $450 million 1.625% 10-year senior notes, series Q, at 99.843 to yield 1.642%, or a spread over Treasuries of 68 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes feature a make-whole call prior to Oct. 15, 2030 at a discount rate of the Treasury rate plus 12.5 bps and then a par call.
Credit Agricole CIB, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used for general corporate purposes of its utility business, which may include funding construction, repaying advances and replenishing working capital.
The subsidiary of American Electric Power is based in Columbus, Ohio.
| Issuer: | Ohio Power Co.
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| Amount: | $450 million
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| Description: | Senior notes, Series Q
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| Maturity: | Jan. 15, 2031
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| Bookrunners: | Credit Agricole CIB, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC
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| Coupon: | 1.625%
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| Price: | 99.843
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| Yield: | 1.642%
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| Spread: | Treasuries plus 68 bps
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| Call feature: | Make-whole call before Oct. 15, 2030 at Treasuries plus 12.5 bps; thereafter at par
|
| Trade date: | Jan. 5
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| Settlement date: | Jan. 7
|
| Expected ratings: | Moody’s: A3
|
| S&P: A-
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| Fitch: A
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| Distribution: | SEC registered
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