By Wendy Van Sickle
Columbus, Ohio, May 8 – Ohio Power Co. sold $400 million of series S senior notes with a 10-year tenor (Baa1/A-/A) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a 5% coupon at 99.528 discount to yield 5.06%.
The spread on the notes is 155 basis points over Treasuries.
The notes will have a make-whole call with a Treasuries plus 25 bps premium and then a par call after March 1, 2033.
Credit Agricole Securities (USA) Inc., MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc. are joint bookrunners.
Proceeds will be used for general corporate purposes relating to the company’s utility business.
The company engages in the transmission and distribution of electric power. Ohio Power is a subsidiary of American Electric Power Co., Inc., a public utility holding company based in Columbus, Ohio.
| Issuer: | Ohio Power Co.
|
| Amount: | $400 million
|
| Issue: | Senior notes, series S
|
| Maturity: | June 1, 2033
|
| Bookrunners: | Credit Agricole Securities (USA) Inc., MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | Academy Securities, Inc. and Fifth Third Securities, Inc.
|
| Trustee: | Bank of New York Mellon Trust
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Coupon: | 5%
|
| Price: | 99.528
|
| Yield: | 5.06%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until March 1, 2033; thereafter at par
|
| Trade date: | May 8
|
| Settlement date: | May 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 120 bps to 125 bps area
|
| Cusip: | 677415CV1
|
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