By Cristal Cody
Tupelo, Miss., May 12 – Appalachian Power Co. priced an upsized $500 million of 3.7% 30-year senior notes (Baa1/A-) on Tuesday at a spread of 235 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The 30-year notes were initially guided at the 260 bps over Treasuries area.
The notes priced at 99.409 to yield 3.733%.
The deal was upsized from $400 million.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for the repayment of advances from affiliates and for other general corporate purposes. As of May 4, the company had $371 million in advances from affiliates outstanding.
Appalachian Power is a Columbus, Ohio-based electric utility.
| Issuer: | Appalachian Power Co.
|
| Amount: | $500 million
|
| Description: | Series Z senior notes
|
| Maturity: | May 1, 2050
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC
|
| Co-manager: | Huntington Securities, Inc., Academy Securities, Inc., Drexel Hamilton, LLC, Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Coupon: | 3.7%
|
| Price: | 99.409
|
| Yield: | 3.733%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps before Nov. 1, 2049; thereafter at par
|
| Trade date: | May 12
|
| Settlement date: | May 14
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 260 bps area
|
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