AEP receives underwriting commitment for credit facility extension

The $1.5 billion facility will replace a $2.5 billion facility that matures in May 2003. The $1 billion reduction reflects the company’s lower reliance on short-term debt going forward. This new facility, combined with an existing $1 billion facility that extends to May 2005 and Euro facilities that expire in October, provides $2.8 billion to support AEP’s commercial paper program and other short-term cash needs.

“We are pleased to have successfully extended this credit facility well before the maturity date,” said Geoffrey Chatas, AEP’s vice president - corporate finance. “This leaves us with $2.8 billion of bank revolving credit facilities with roughly evenly spread maturities over the next three years. The new commitment, together with the $2 billion financing earlier this month for the Ohio and Texas subsidiaries, effectively eliminates the company’s refinancing risk in 2003.”

The $1.725 billion corporate separation facility that matures in April has been terminated and the $1.3 billion drawn against it has been paid off with proceeds from the $2 billion in long-term financing noted above.

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.