AmericanElectric Power Co. Inc. subsidiary sold$400 million of its 2.75% senior notes due Oct. 1, 2026, for general corporate purposesof its utility business.
Those purposes may include funding the company'sconstruction program, repaying advances from affiliates, replenishing workingcapital, and the payment at maturity of its $250 million of 5.55% senior notes,series E, due Jan.15, 2017. Pending such use, the net proceeds will betemporarily invested in short-term, interest-bearing obligations.
Interest on the series K notes is payable semiannually,beginning April 1, 2017. The notes have a reoffer spread of 118 basis points andwere expected to be rated Baa2 by Moody's and BBB+ by S&P Global Ratings.
Morgan Stanley & Co. LLC, UBS Securities LLC, WellsFargo Securities LLC, BNY Mellon Capital Markets LLC and KeyBanc CapitalMarkets Inc. acted as joint book-running managers. BOK Financial SecuritiesInc. and PNC Capital Markets LLC served as co-managers.
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