AEP SUBSIDIARY AEP TEXAS INC. TO REDEEM SENIOR NOTES

Rhea-AI Summary

AEP Texas Inc., a subsidiary of American Electric Power (AEP), will redeem $400 million of its 2.40% Senior Notes, Series C, due July 1, 2022. The notes will be redeemed at 100% of their principal amount, which is $100 per note, plus accrued interest and a make-whole premium.

Notice of this redemption was issued on June 1, 2022, in compliance with the indenture terms. The Bank of New York Mellon Trust Company, N.A. acts as the redemption agent.

Positive

• The $400 million redemption indicates strong financial management and liquidity.
• Redeeming notes at par reflects a stable capital position.

Negative

• None.

COLUMBUS, Ohio, June 1, 2022 /PRNewswire/ -- AEP Texas Inc., a public utility subsidiary of American Electric Power (Nasdaq: AEP), announced that on July 1, 2022, it will redeem the entire outstanding $400 million principal amount of its 2.40% Senior Notes, Series C, due 2022. The notes will be redeemed at 100 percent of the principal amount outstanding (at par value of $100 per Senior Note), plus interest through the date of redemption, plus the required make-whole premium.

Notice of the redemption was mailed on June 1, 2022. This redemption is in accordance with the terms of the indenture under which the notes were issued.

The Bank of New York Mellon Trust Company, N.A. is the redemption agent and trustee.

 

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SOURCE American Electric Power

FAQ

When will AEP Texas redeem its Senior Notes?

AEP Texas will redeem its Senior Notes on July 1, 2022.

What is the principal amount of the Senior Notes being redeemed by AEP Texas?

AEP Texas is redeeming $400 million of its Senior Notes.

What is the interest rate on the Senior Notes being redeemed by AEP Texas?

The Senior Notes being redeemed have an interest rate of 2.40%.

Who is the redemption agent for AEP Texas's Senior Notes?

The Bank of New York Mellon Trust Company, N.A. is the redemption agent.