Press release
AEP Announces Pricing of Common Stock Offering with a Forward Component
COLUMBUS, Ohio, March 24, 2025 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) today announced the pricing of a registered underwritten offering of
About this update from American Electric Power Company, Inc.
[{"type":"text","content":"COLUMBUS, Ohio, March 24, 2025 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) today announced the pricing of a registered underwritten offering of 19,607,844 shares of its common stock at a price to the public of $102.00 per share. Subject to certain conditions, all shares are expected to be borrowed by the forward counterparties (as defined below) (or their respective affiliates) from third parties and sold to the underwriters and offered in connection with the forward sale agreements described below. Citigroup, Barclays, BofA Securities and Wells Fargo Securities are acting as lead book-running managers for this offering. Goldman Sachs & Co. LLC, J.P. Morgan, Mizuho, Morgan Stanley, MUFG and Scotiabank are also acting as lead book-running managers and RBC Capital Markets and KeyBanc Capital Markets are acting as co-managers for this offering.\nIn connection with the offering, AEP entered into forward sale agreements with each of Citibank, N.A. and Barclays Bank PLC (the \"forward counterparties\") under which AEP agreed to issue and sell to the forward counterparties an aggregate of 19,607,844 shares of its common stock. In addition, the underwriters of the offering have been granted a 30-day option to purchase up to an additional 2,941,176 shares of AEP's common stock upon the same terms. If the underwriters exercise their option to purchase additional shares, AEP expects to enter into additional forward sale agreements with the forward counterparties with respect to the additional shares.\nSettlement of the forward sale agreements is expected to occur on or prior to December 31, 2026. AEP may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.\nIf AEP elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include capital contributions to its utility subsidiaries, acquisitions and/or repayment of debt.\nThe offering is made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in whi...