Ohio Power Co. and Columbus Southern Power Co. each issued $500 million in senior notes on Tuesday.
Ohio Power issued two tranches:
| Amount | Type | Maturity | Spread | Yield |
| $250 million | 5.50% Series D | 2013 | 157 basis points over 10-year Benchmark Treasury | 5.534% |
| $250 million | 6.60% Series E | 2033 | 177 basis points over 30-year Benchmark Treasury | 6.636% |
Columbus Southern Power also issued two tranches:
| $250 million | 5.50% Series A | 2013 | 157 basis points over 10-year Benchmark Treasury | 5.534% |
| $250 million | 6.60% Series B | 2033 | 177 basis points over 30-year Benchmark Treasury | 6.636% |
Offerings from AEP Texas Central Co. (formerly known as Central Power and Light Co.) and AEP Texas North Co. (formerly known as West Texas Utilities Co.) followed on Wednesday.
AEP Texas Central issued four tranches:
| $100 million | Series A floating rate note | 2005 | 125 basis points over LIBOR | N/A |
| $150 million | 3.0% Series C | 2005 | 151 basis points over two-year Benchmark Treasury | 3.127% |
| $275 million | 5.50% Series A | 2013 | 163 basis points over 10-year Benchmark Treasury | 5.55% |
| $275 million | 6.65% Series B | 2033 | 183 basis points over 30-year Benchmark Treasury | 6.688% |
AEP Texas North issued:
| $225 million | 5.50% Series A | 2013 | 163 basis points over 10-year Benchmark Treasury | 5.55% |
“We are delighted we were able to secure such favorable long-term rates in this market, and we were quite pleased with the level of interest shown in our bonds,” said Armando Pena, AEP treasurer.
Proceeds will go largely toward paying down short-term debt, including AEP’s $1.725 billion corporate separation facility, of which $1.3 billion is outstanding.
The companies expect to close the transactions Friday for Ohio Power and Columbus Southern Power and next Tuesday for AEP Texas Central and AEP Texas North.
American Electric Power owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.
Corporate Media Relations
614/716-1938
Analysts: Bette Jo Rozsa
Managing Director, Investor Relations
614/716-2840