COLUMBUS, Ohio, May 31, 2023
/PRNewswire/ -- American Electric Power (Nasdaq: AEP) announced
today that it has successfully remarketed its 1.30% Junior
Subordinated Debentures due 2025 (the "Original Debentures"), which
were originally issued Aug. 14, 2020,
as a component of AEP's Equity Units.
The Original Debentures are being remarketed into $850 million aggregate principal amount of 5.699%
Junior Subordinated Debentures due 2025 (the "Remarketed
Debentures"). Effective June 2, 2023,
the Remarketed Debentures will bear interest at 5.699% per year and
will mature on Aug. 15, 2025. The
remarketing is expected to close on June 2,
2023, subject to customary closing conditions.
AEP conducted the remarketing on behalf of holders of the Equity
Units and will not directly receive any proceeds from the issuance
and sale of the Remarketed Debentures. The proceeds from the
issuance and sale of the Remarketed Debentures will be used to
purchase a portfolio of treasury securities maturing on
Aug. 10, 2023. AEP expects that a
portion of the funds generated upon maturity of the portfolio will
be used on Aug. 15, 2023, to settle
the purchase contracts it entered into as a part of the Equity
Units.
The remarketing is being made pursuant to an effective shelf
registration statement of AEP that has been filed with the U.S.
Securities and Exchange Commission (SEC). This press release does
not constitute an offer to sell or a solicitation of an offer to
buy the securities described herein, nor shall there be any sale of
these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities law of any such jurisdiction.
The offering of debentures in connection with the remarketing may
only be made by means of a prospectus and related prospectus
supplement, copies of which may be obtained at no cost by visiting
EDGAR on the SEC's website at www.sec.gov or by contacting J.P.
Morgan Securities LLC, c/o Broadridge Financial Solutions, Attn:
Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone:
1-866-803-9204 or Mizuho Securities USA LLC, Attn: Debt Capital Markets, 1271
Avenue of the Americas New York,
NY 10020, or by telephone: 1-866-271-7403.
American Electric Power, based in Columbus, Ohio, is powering a cleaner,
brighter energy future for its customers and communities. AEP's
approximately 17,000 employees operate and maintain the nation's
largest electricity transmission system and more than 225,000 miles
of distribution lines to safely deliver reliable and affordable
power to 5.6 million regulated customers in 11 states. AEP also is
one of the nation's largest electricity producers with
approximately 30,000 megawatts of diverse generating capacity,
including more than 7,000 megawatts of renewable energy. The
company's plans include growing its renewable generation portfolio
to approximately 50% of total capacity by 2032. AEP is on track to
reach an 80% reduction in carbon dioxide emissions from 2005 levels
by 2030 and has committed to achieving net zero by 2045. AEP is
recognized consistently for its focus on sustainability, community
engagement, and diversity, equity and inclusion. AEP's family of
companies includes utilities AEP Ohio, AEP Texas, Appalachian Power
(in Virginia and West Virginia), AEP Appalachian Power (in
Tennessee), Indiana Michigan
Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. For more
information, visit aep.com.
This report made by American Electric Power and its Registrant
Subsidiaries contains forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934. Although AEP
and each of its Registrant Subsidiaries believe that their
expectations are based on reasonable assumptions, any such
statements may be influenced by factors that could cause actual
outcomes and results to be materially different from those
projected. Among the factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changes in economic conditions, electric market demand and
demographic patterns in AEP service territories; the impact of
pandemics and any associated disruption of AEP's business
operations due to impacts on economic or market conditions, costs
of compliance with potential government regulations, electricity
usage, supply chain issues, customers, service providers, vendors
and suppliers; the economic impact of increased global trade
tensions including the conflict between Russia and Ukraine, and the adoption or expansion of
economic sanctions or trade restrictions; inflationary or
deflationary interest rate trends; volatility and disruptions in
the financial markets precipitated by any cause, including failure
to make progress on federal budget or debt ceiling matters or
instability in the banking industry, particularly developments
affecting the availability or cost of capital to finance new
capital projects and refinance existing debt; the availability and
cost of funds to finance working capital and capital needs,
particularly if expected sources of capital, such as proceeds from
the sale of assets, subsidiaries or tax credits, do not
materialize, and during periods when the time lag between incurring
costs and recovery is long and the costs are material; decreased
demand for electricity; weather conditions, including storms and
drought conditions, and AEP's ability to recover significant storm
restoration costs; the cost of fuel and its transportation, the
creditworthiness and performance of fuel suppliers and transporters
and the cost of storing and disposing of used fuel, including coal
ash and spent nuclear fuel; the availability of fuel and necessary
generation capacity and the performance of generation plants; AEP's
ability to recover fuel and other energy costs through regulated or
competitive electric rates; the ability to transition from fossil
generation and the ability to build or acquire renewable
generation, transmission lines and facilities (including the
ability to obtain any necessary regulatory approvals and permits)
when needed at acceptable prices and terms, including favorable tax
treatment, cost caps imposed by regulators and other operational
commissions and customers for renewable generation projects, and to
recover all related costs; new legislation, litigation and
government regulation, including changes to tax laws and
regulations, oversight of nuclear generation, energy commodity
trading and new or heightened requirements for reduced emissions of
sulfur, nitrogen, mercury, carbon, soot or particulate matter and
other substances that could impact the continued operation, cost
recovery, and/or profitability of generation plants and related
assets; the impact of federal tax legislation on results of
operations, financial condition, cash flows or credit ratings; the
risks associated with fuels used before, during and after the
generation of electricity and the byproducts and wastes of such
fuels, including coal ash and spent nuclear fuel; timing and
resolution of pending and future rate cases, negotiations and other
regulatory decisions, including rate or other recovery of new
investments in generation, distribution and transmission service
and environmental compliance; resolution of litigation; AEP's
ability to constrain operation and maintenance costs; prices and
demand for power generated and sold at wholesale; changes in
technology, particularly with respect to energy storage and new,
developing, alternative or distributed sources of generation; AEP's
ability to recover through rates any remaining unrecovered
investment in generation units that may be retired before the end
of their previously projected useful lives; volatility and changes
in markets for coal and other energy-related commodities,
particularly changes in the price of natural gas; the impact of
changing expectations and demands of customers, regulators,
investors and stakeholders, including heightened emphasis on
environmental, social and governance concerns; changes in utility
regulation and the allocation of costs within regional transmission
organizations, including ERCOT, PJM and SPP; changes in the
creditworthiness of the counterparties with contractual
arrangements, including participants in the energy trading market;
actions of rating agencies, including changes in the ratings of
debt; the impact of volatility in the capital markets on the value
of the investments held by AEP's pension, other postretirement
benefit plans, captive insurance entity and nuclear decommissioning
trust and the impact of such volatility on future funding
requirements; accounting standards periodically issued by
accounting standard-setting bodies; other risks and unforeseen
events, including wars and military conflicts, the effects of
terrorism (including increased security costs), embargoes,
naturally occurring and human-caused fires, cyber security threats
and other catastrophic events; and the ability to attract and
retain the requisite work force and key personnel.
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SOURCE American Electric Power