Summary
American Electric Power Company, Inc. (AEP) announced the completion of a remarketing of its 3.40% Junior Subordinated Debentures due 2024, originally part of its Equity Units. The remarketing resulted in these debentures being redesignated as 2.031% Junior Subordinated Notes due 2024, with a reduced interest rate. This transaction was conducted on behalf of the holders of the original Equity Units and AEP did not directly receive proceeds. The proceeds from the remarketing were used to purchase treasury securities that will mature shortly before the notes' maturity. AEP anticipates using funds from these maturing securities to settle the purchase contracts associated with the original Equity Units on March 15, 2022. This action is a step towards settling obligations related to the 2019 Equity Unit issuance.
Key Highlights
- 1AEP completed a remarketing of $805,000,000 aggregate principal amount of its 2024 Junior Subordinated Debentures.
- 2The interest rate on these debentures was reduced from 3.40% to 2.031% per annum.
- 3The debentures were redesignated as 2.031% Junior Subordinated Notes due 2024, maturing on March 15, 2024.
- 4The transaction was conducted on behalf of holders of AEP's original Equity Units, and AEP did not directly receive proceeds.
- 5Proceeds were used to purchase treasury securities maturing in March 2022.
- 6AEP expects to use funds from maturing treasury securities to settle purchase contracts related to the original Equity Units in March 2022.