AEP Subsidiary Southwestern Electric Power Company to Redeem Senior Notes

Rhea-AI Summary

Southwestern Electric Power Company, a subsidiary of American Electric Power (Nasdaq: AEP), will redeem $275 million of its 3.55% Senior Notes, Series I, on December 3, 2021. The redemption will occur at par value, plus accrued interest, in accordance with the indenture terms. Notices for the redemption were sent out on November 3, 2021. This strategic move reflects the company's proactive management of its debt obligations.

Positive

• Planned redemption of $275 million in Senior Notes enhances financial stability.
• Redemption occurring at par value maintains investor confidence.
• Proactive debt management aligns with shareholder interests.

Negative

• None.

COLUMBUS, Ohio, Nov. 3, 2021 /PRNewswire/ -- Southwestern Electric Power Company, a public utility subsidiary of American Electric Power (Nasdaq: AEP), announced that on Dec. 3, 2021, it will redeem the entire outstanding $275 million principal amount of its 3.55 percent Senior Notes, Series I, 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.

Notice of the redemption was mailed on Nov. 3, 2021. 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 redeem its Senior Notes?

AEP will redeem its Senior Notes on December 3, 2021.

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

AEP is redeeming a total of $275 million in Senior Notes.

What interest rate do the Senior Notes have?

The Senior Notes have an interest rate of 3.55%.

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

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

When was the notice for the Senior Notes redemption mailed?

The notice was mailed on November 3, 2021.