Southwestern Electric Power plans a Series S senior notes offering, with proceeds potentially supporting Utility construction, affiliate advances, Working Capital and the $400 million Maturity payment for its 2.75% Series K notes. The preliminary terms may change, so investors must assess the stated uses before final note Economics are established.

Key Highlights

  • Southwestern Electric Power had $245 million in affiliate advances outstanding at September 9, 2026.
  • The notes would be unsecured and rank equally with the company’s unsecured unsubordinated debt.
  • The accompanying prospectus covers up to $2,250,000,000 of unsecured notes across potential offerings.

Southwestern Electric Power Company plans to offer Series S senior notes, with proceeds potentially supporting the payment at maturity of its 2.75% Series K notes, whose aggregate principal amount is $400 million. The preliminary terms remain subject to completion and may change.

Series S Notes Target Utility Funding

Proceeds from the notes may fund the company’s construction program, repay affiliate advances, replenish working capital and support other general corporate purposes tied to its utility business. Interest on the notes is expected to be paid semi-annually in arrears, beginning in 2027. The securities would mature on the date specified in the final terms and may be redeemed in whole or in part at the company’s option. The notes would not include a sinking fund. The notes would rank equally with all of Southwestern Electric Power’s unsecured unsubordinated debt. The broader prospectus sets terms for $2,250,000,000 of unsecured notes that may be sold in one or more offerings. The company’s accompanying prospectus estimated construction costs in 2024 at approximately $1.2 billion. Unused proceeds may be temporarily invested in short-term, interest-bearing obligations. The Series S notes would be issued in U.S. dollars, with principal and interest payable in U.S. dollars.