By Cristal Cody
Chicago, Sept. 9 – Ohio Power Co. sold $600 million of series R senior notes with a 30-year tenor (A3/A-/A) on Thursday, according to an FWP filing with the Securities and Exchange Commission and information from a market source.
The notes priced with a 2.9% coupon and a 99.521 discount to yield 2.924%.
The spread on the notes is Treasuries plus 103 basis points, lower than price talk in the Treasuries plus 120 bps to 125 bps area.
The notes will have a make-whole call with a Treasuries plus 20 bps premium and then a par call after April 1, 2051.
BofA Securities, Inc., CIBC World Markets Corp., MUFG, Truist Securities Inc. and U.S. Bancorp Investments, Inc. are listed as joint bookrunners on the 424B5 filing with the SEC.
Proceeds from the notes will be used for the upcoming maturity date payment of the $500 million 5 3/8% series M senior notes.
The subsidiary of American Electric Power is based in Columbus, Ohio.
| Issuer: | Ohio Power Co.
|
| Issue: | Senior notes, series R
|
| Amount: | $600 million
|
| Maturity: | Oct. 1, 2051
|
| Bookrunners: | BofA Securities, Inc., CIBC World Markets Corp., MUFG, Truist Securities Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Fifth Third Securities Inc. and Mischler Financial Group, Inc.
|
| Trustee: | Bank of New York Mellon Trust
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Coupon: | 2.9%
|
| Price: | 99.521
|
| Yield: | 2.924%
|
| Spread: | Treasuries plus 103 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until April 1, 2051; thereafter at par
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 120 bps to 125 bps area
|
| Cusip: | 677415CU3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
