American Electric Power Co. Inc. subsidiary Ohio Power Co. sold $400 million of its 4.15% series N senior unsecured notes due April 1, 2048, according to a March 20 free writing prospectus.
Interest on the notes is payable semiannually on April 1 and Oct. 1 of each year, starting Oct. 1. The notes have a spread to benchmark Treasury of 107 basis points. The issue was expected to be rated A2 by Moody's and A- by S&P Global Ratings.
Ohio Power plans to use net proceeds for general corporate purposes relating to its utility business, including paying $350 million of 6.05% series G senior notes due May 1. The company may also fund its construction program, repay advances from affiliates and replenish working capital and may also temporarily invest them in short-term, interest-bearing obligations if not used immediately.
Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC acted as joint book-running managers. Huntington Investment Co. served as the sole co-manager.
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