Summary
This Form 8-K filing by American Electric Power Company, Inc. (AEP) on January 6, 2012, details the completion of a significant internal corporate restructuring. Specifically, on December 31, 2011, AEP's subsidiary Columbus Southern Power Company (CSPCo) merged with and into another AEP subsidiary, Ohio Power Company (OPCo), with OPCo being the surviving entity. This merger effectively consolidated these two power generation and transmission entities under a single operational and legal structure within the AEP system. The primary financial implications of this merger involve the assumption of CSPCo's outstanding debt obligations by OPCo. This includes several senior notes and air quality revenue bonds totaling hundreds of millions of dollars. These assumed liabilities are now the direct financial obligations of OPCo. While this filing does not present full pro forma financial information, it indicates that such details will be provided in a subsequent amendment, offering investors a clearer picture of the combined entity's financial position post-merger.
Key Highlights
- 1Completion of the merger between AEP subsidiaries Columbus Southern Power Company (CSPCo) and Ohio Power Company (OPCo) on December 31, 2011.
- 2Ohio Power Company (OPCo) is the surviving entity, and the separate legal existence of CSPCo has terminated.
- 3OPCo has assumed all outstanding debt obligations previously held by CSPCo.
- 4Assumed debt includes $150 million in Floating Rate Senior Notes Series A due 2012, $250 million in 5.85% Senior Notes Series F due 2035, and $350 million in 6.05% Senior Notes Series G due 2018.
- 5OPCo also assumed $250 million in 5.50% Senior Notes Series C due 2013 and $250 million in 6.60% Senior Notes Series D due 2033.
- 6Furthermore, OPCo assumed obligations related to approximately $192.7 million in Ohio Air Quality Revenue Bonds issued by CSPCo.
- 7Pro forma financial information for the combined entity will be filed by amendment to this 8-K within 71 days.