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AEP Announces Pricing of Common Stock Offering with a Forward Component
AEPAmerican Electric Power(AEP) Prnewswire·2025-03-25 03:05

Core Viewpoint - American Electric Power (AEP) has announced a registered underwritten offering of 19,607,844 shares of its common stock at a public price of 102.00pershare,withtheofferingexpectedtobefacilitatedthroughforwardsaleagreementswithCitibankandBarclays[1][2].Group1:OfferingDetails−Theofferingincludesa30−dayoptionforunderwriterstopurchaseanadditional2,941,176sharesunderthesameterms[2].−SettlementoftheforwardsaleagreementsisanticipatedtooccuronorbeforeDecember31,2026,withAEPhavingtheoptionforcashornetsharesettlement[3].Group2:UseofProceeds−AEPplanstousethenetproceedsfromtheofferingforgeneralcorporatepurposes,whichmayincludecapitalcontributionstoutilitysubsidiaries,acquisitions,and/ordebtrepayment[3].Group3:CompanyOverview−AEPisinvesting102.00 per share, with the offering expected to be facilitated through forward sale agreements with Citibank and Barclays [1][2]. Group 1: Offering Details - The offering includes a 30-day option for underwriters to purchase an additional 2,941,176 shares under the same terms [2]. - Settlement of the forward sale agreements is anticipated to occur on or before December 31, 2026, with AEP having the option for cash or net share settlement [3]. Group 2: Use of Proceeds - AEP plans to use the net proceeds from the offering for general corporate purposes, which may include capital contributions to utility subsidiaries, acquisitions, and/or debt repayment [3]. Group 3: Company Overview - AEP is investing 54 billion from 2025 through 2029 to enhance service and support growing energy needs, operating the largest electric transmission system in the U.S. with 40,000 line miles and over 225,000 miles of distribution lines [5]. - The company serves 5.6 million customers across 11 states and has a generating capacity of approximately 29,000 megawatts [5].