By Cristal Cody
Tupelo, Miss., June 29 – AEP Texas Inc. priced an upsized $600 million of 2.1% 10-year senior notes (Baa1/A-) on Monday at 99.597 to yield 2.145%, or a spread of 150 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the 162.5 bps spread area.
The offering was upsized from $500 million.
Barclays, Credit Agricole Securities (USA) Inc., MUFG and RBC Capital Markets LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
AEP Texas is a Corpus Christi, Tex.-based electric company.
| Issuer: | AEP Texas Inc.
|
| Amount: | $600 million
|
| Maturity: | July 1, 2030
|
| Description: | Series I senior notes
|
| Bookrunners: | Barclays, Credit Agricole Securities (USA) Inc., MUFG and RBC Capital Markets LLC
|
| Co-managers: | BBVA Securities Inc.
|
| Coupon: | 2.1%
|
| Price: | 99.597
|
| Yield: | 2.145%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole before April 1, 2030 at Treasuries plus 25 bps; thereafter at par
|
| Trade date: | June 29
|
| Settlement date: | July 1
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 162.5 bps area
|
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