Filed pursuant to Rule 433
Registration No. 333-208535
January 18, 2018
PRICING TERM SHEET
Issuer: | Southwestern Electric Power Company |
Designation: | Senior Notes, Series L, due 2048 |
Principal Amount: | $450,000,000 |
Maturity: | February 1, 2048 |
Coupon: | 3.85% |
Interest Payment Dates: | February 1 and August 1 |
First Interest Payment Date: | August 1, 2018 |
Benchmark Treasury: | 2.75% due August 15, 2047 |
Benchmark Treasury Yield: | 2.892% |
Reoffer Spread: | T+97 basis points |
Yield to Maturity: | 3.862% |
Price to Public: | 99.787% of the principal amount thereof |
Transaction Date: | January 18, 2018 |
Settlement Date: | January 22, 2018 (T+2) |
Redemption Terms: | |
Make-whole call: | Prior to August 1, 2047 at a discount rate of the Treasury Rate plus 15 basis points |
Par call: | On or after August 1, 2047 at par |
Minimum Denomination: | $2,000 and integral multiples of $1,000 in excess thereof |
CUSIP/ISIN: | 845437BQ4/US845437BQ42 |
Joint Book-Running Managers: | Merrill Lynch, Pierce, Fenner & Smith Incorporated Barclays Capital Inc. KeyBanc Capital Markets Inc. UBS Securities LLC |
Co-Managers: | Mizuho Securities USA LLC BOK Financial Securities, Inc. The Huntington Investment Company C.L. King & Associates, Inc. Loop Capital Markets LLC Samuel A. Ramirez & Company, Inc. |
Expected Ratings*: | Baa2 by Moody’s Investors Service, Inc. A- by S&P Global Ratings, Inc., a division of S&P Global Inc. |
*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 Merrill Lynch, Pierce, Fenner & Smith Incorporated, toll-free at 1-800-294-1322, Barclays Capital Inc., toll-free at 1-888-603-5847, KeyBanc Capital Markets Inc., toll-free at 1-866-227-6479 or UBS Securities LLC, toll-free at 1-888-827-7275.