AEP prices stock offering at $127 per share

American Electric Power (NASDAQ: AEP) announced the pricing of a registered underwritten offering of 20.5 million shares of common stock at $127 per share. The offering includes a forward sale component where shares will be borrowed by forward counterparties from third parties and sold to underwriters.

BofA Securities, Goldman Sachs & Co. LLC and Morgan Stanley serve as lead book-running managers for the offering. Additional joint book-running managers include Barclays, Citigroup, J.P. Morgan, Mizuho, MUFG, Scotiabank and Wells Fargo Securities.

AEP entered into forward sale agreements with Bank of America, N.A., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC for the 20.5 million shares. Underwriters received a 30-day option to purchase up to an additional 3.1 million shares under the same terms. Settlement of the forward sale agreements is expected to occur on or prior to May 31, 2028.

AEP may elect cash settlement or net share settlement for all or part of its obligations under the forward sale agreements, subject to certain conditions. If the company chooses physical settlement, it expects to use net proceeds for general corporate purposes, which may include capital contributions to utility subsidiaries, acquisitions or debt repayment.

The Columbus, Ohio-based electric utility operates the nation's largest electric transmission system with 40,000 line miles and serves 5.6 million customers across 11 states. AEP plans to invest $78 billion from 2026 through 2030 to enhance customer service and support growing energy needs.

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