American Electric Power Launches 20.47M-Share Offering at $127 with Forward Component
American Electric Power priced 20,472,442 common shares at $127.00 each under forward sale agreements, granting underwriters a 30-day option on 3,070,866 additional shares. Net proceeds may fund capital contributions, acquisitions or debt repayment, with forward settlement expected on or before May 31, 2028 via cash or net share settlement.
1. Offering Details
American Electric Power has launched a registered underwritten offering of 20,472,442 common shares priced at $127.00 per share. Lead book-running managers include BofA Securities, Goldman Sachs & Co. LLC and Morgan Stanley, with Barclays, Citigroup, J.P. Morgan and others acting as joint book-runners and co-managers.
2. Forward Sale Agreements
AEP entered into forward sale agreements with Bank of America, Goldman Sachs and Morgan Stanley, under which all offered shares are expected to be borrowed from third parties and sold to the underwriters. Settlement of these forward sales is scheduled on or before May 31, 2028, with AEP able to elect cash settlement or net share settlement for its obligations.
3. Option and Use of Proceeds
Underwriters have a 30-day option to purchase up to 3,070,866 additional shares on the same terms, which would prompt further forward sale agreements if exercised. AEP intends to use net proceeds for general corporate purposes, including capital contributions to utility subsidiaries, acquisitions and potential debt repayment.