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AEP Transmission sells $350M of senior notes

AEP Transmission Co. LLC sold $350 million of its 3.15% series L senior notes due Sept. 15, 2049, according to a Sept. 9 free writing prospectus.

Interest on the notes is payable every March 15 and Sept. 15, beginning March 15, 2020. The notes, which have a reoffer spread of 110 basis points, were expected to be rated A2 by Moody's, A- by S&P Global Ratings and A by Fitch Ratings.

The American Electric Power Co. Inc. subsidiary plans to use net proceeds for general corporate purposes relating to its utility business, including construction costs, and to repay outstanding advances from affiliates. AEP Transmission estimates construction costs for 2019 of approximately $1.59 billion. At Sept. 3, the company had approximately $157 million in advances from affiliates outstanding.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc. acted as joint book-running managers.