By Andrea Heisinger
New York, Sept. 4 - Ohio Power Co. priced $250 million of 5.75% five-year senior notes Thursday to yield Treasuries plus 290 basis points, an informed source said.
The notes (A3/BBB/BBB+) priced at 99.92 to yield 5.769%.
There is a make-whole call of Treasuries plus 45 bps.
The issue came at the tight end of price talk, which was Treasuries plus 290 bps to 300 bps.
Bookrunners were Calyon, Citigroup Global Markets Inc. and UBS Investment Bank.
Co-manager was KeyBanc Capital Markets.
Proceeds will be used for general corporate purposes relating to the utility business, including funding a construction program, redeeming or repurchasing outstanding debt or preferred stock and replenishing working capital.
The subsidiary of American Electric Power is based in Columbus, Ohio.
| Issuer: | Ohio Power Co.
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 1, 2013
|
| Bookrunners: | Calyon, Citigroup Global Markets Inc., UBS Investment Bank
|
| Co-manager: | KeyBanc Capital Markets
|
| Coupon: | 5.75%
|
| Price: | 99.92
|
| Yield: | 5.769%
|
| Spread: | Treasuries plus 290 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 9
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 290 bps to 300 bps
|
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