| Issuer: | Gulf Power Company |
| Security: | Series 2017A 3.30% Senior Notes due May 30, 2027 |
| Expected Ratings:* | A2 (Stable)/A- (Negative)/A (Stable) (Moody’s/Standard & Poor’s/Fitch) |
| Size: | $300,000,000 |
| Initial Public Offering Price: | 99.830% of principal amount |
| Maturity Date: | May 30, 2027 |
| Treasury Benchmark: | 2.375% due May 15, 2027 |
| Benchmark Treasury Yield: | 2.34% |
| Spread to Treasury: | +98 basis points |
| Re-offer Yield: | 3.32% |
| Coupon: | 3.30% |
| Optional Redemption: | |
| Make-Whole Call: | Prior to February 28, 2027 at T+15 basis points |
| Par Call: | On or after February 28, 2027 at 100% |
| Interest Payment Dates: | May 30 and November 30 of each year, beginning November 30, 2017 |
| Format: | SEC Registered |
| Denominations: | $2,000 and integral multiples of $1,000 in excess thereof |
| CUSIP/ISIN: | 402479 CF4/US402479CF43 |
| Trade Date: | May 15, 2017 |
| Expected Settlement Date: | May 18, 2017 (T+3) |
| Joint Book-Running Managers: | Barclays Capital Inc. BNP Paribas Securities Corp. MUFG Securities Americas Inc. |
| Co-Managers: | BBVA Securities Inc. Fifth Third Securities, Inc. Apto Partners, LLC Drexel Hamilton, LLC Mischler Financial Group, Inc. |
