Filed pursuant to Rule 433
Registration No. 333-253585
May 16, 2022
PRICING TERM SHEET
| | | | | | | | |
| Issuer: | AEP Texas Inc. |
| Expected Ratings*: | Baa2 (stable) by Moody’s Investors Service, Inc. A- (stable) by S&P Global Ratings, a division of S&P Global Inc. BBB+ (stable) by Fitch Ratings, Inc. |
| Transaction Date: | May 16, 2022 |
| Settlement Date: | May 18, 2022 (T+2) |
| Designation: | Senior Notes, Series K, due 2032 | Senior Notes, Series L, due 2052 |
| Principal Amount: | $500,000,000 | $500,000,000 |
| Maturity: | May 15, 2032 | May 15, 2052 |
| Coupon: | 4.70% | 5.25% |
| Interest Payment Dates: | May 15 and November 15 | May 15 and November 15 |
| First Interest Payment Date: | November 15, 2022 | November 15, 2022 |
| Treasury Benchmark: | 2.875% due May 15, 2032 | 2.250% due February 15, 2052 |
| Treasury Yield: | 2.886% | 3.111% |
| Reoffer Spread: | T+185 basis points | T+215 basis points |
| Yield to Maturity: | 4.736% | 5.261% |
| Price to Public: | 99.716% of the principal amount thereof | 99.836% of the principal amount thereof |
| Redemption Terms: | | |
| Make-whole call: | Prior to February 15, 2032 at a discount rate of the Treasury Rate plus 30 basis points | Prior to November 15, 2051 at a discount rate of the Treasury Rate plus 35 basis points |
| Par call: | On or after February 15, 2032 at par | On or after November 15, 2051 at par |
| CUSIP/ISIN: | 00108W AP5/US00108WAP59 | 00108W AQ3/US00108WAQ33 |
| Minimum Denomination: | $2,000 and integral multiples of $1,000 in excess thereof |
| Joint Book-Running Managers: | BofA Securities, Inc. BNY Mellon Capital Markets, LLC Mizuho Securities USA LLC MUFG Securities Americas Inc. PNC Capital Markets LLC Credit Agricole Securities (USA) Inc. Credit Suisse Securities (USA) LLC TD Securities (USA) LLC |
| Co-Managers: | AmeriVet Securities, Inc. Siebert Williams Shank & Co., 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 BofA Securities, Inc. toll-free at 1-800-294-1322, BNY Mellon Capital Markets, LLC toll-free at 1-800-269-6864, Mizuho Securities USA LLC toll free at 1-866-271-7403, MUFG Securities Americas Inc. toll free at 1-877-649-6848 or PNC Capital Markets LLC toll free at 1-855-881-0697.
