Filed pursuant to Rule 433
Registration No. 333-200750
May 11, 2015
PRICING TERM SHEET
Issuer: | Appalachian Power Company | |||
Expected Ratings*: | Baa1 by Moody’s Investors Service, Inc. BBB by Standard & Poor’s Ratings Services | |||
Designation: | Senior Notes, Series V, due 2025 | Senior Notes, Series W, due 2045 | ||
Principal Amount: | $300,000,000 | $350,000,000 | ||
Maturity: | June 1, 2025 | June 1, 2045 | ||
Coupon: | 3.400% | 4.450% | ||
Interest Payment Dates: | June 1 and December 1 | |||
First Interest Payment Date: | December 1, 2015 | |||
Treasury Benchmark: | 2.000% due February 15, 2025 | 3.000% due November 15, 2044 | ||
Treasury Yield: | 2.242% | 2.994% | ||
Reoffer Spread: | T+ 120 basis points | T+ 150 basis points | ||
Yield to Maturity: | 3.442% | 4.494% | ||
Price to Public: | 99.645% of the principal amount thereof | 99.277% of the principal amount thereof | ||
Transaction Date: | May 11, 2015 | |||
Settlement Date: | May 18, 2015 (T+5) | |||
Redemption Terms: | ||||
Make-whole call: | Prior to March 1, 2025 at a discount rate of the Treasury Rate plus 20 basis points | Prior to December 1, 2044 at a discount rate of the Treasury Rate plus 25 basis points | ||
Par call: | On or after March 1, 2025 at par | On or after December 1, 2044 at par | ||
Minimum Denomination: | $1,000 and integral multiples in excess thereof | |||
CUSIP/ISIN: | 037735CU9/US037735CU97 | 037735CV7/US037735CV70 | ||
Joint Book-Running Managers: | Goldman, Sachs & Co. U.S. Bancorp Investments, Inc. Wells Fargo Securities, LLC BNY Mellon Capital Markets, LLC KeyBanc Capital Markets Inc. Mitsubishi UFJ Securities (USA), Inc. | |||
Co-Managers: | Fifth Third Securities, Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated PNC Capital Markets LLC RBC Capital Markets, LLC |
* | Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting Goldman, Sachs & Co., toll-free at 1-866-471-2526, U.S. Bancorp Investments, Inc., toll-free at 1-877-558-2607 or Wells Fargo Securities, LLC, toll-free at 1-800-645-3751.