Bulletin: American Electric Power Co. Inc.'s Purchase Of Wind Energy Assets Fits With Its Previously Announced Strategy

NEW YORK (S&P Global Ratings) Feb. 13, 2019--American Electric Power Co. Inc. (AEP; A-/Stable/A-2) announced that it has entered into an agreement to acquire 724 megawatts of wind generation assets with a subsidiary of Sempra Energy for $1.056 billion. S&P Global Ratings considers this acquisition to be in line with AEP's previously announced strategy to invest about $2.2 billion in contracted renewable generation over the next few years. Five of the seven wind projects the company is acquiring are jointly owned with BP Wind Energy. The acquisition price comprises $551 million of cash, $343 million of non-recourse project-level debt, and $162 million of tax equity obligations. The company will fund the cash component with a combination of debt, common equity,

...NEW YORK (S&P Global Ratings) Feb. 13, 2019--American Electric Power Co. Inc. (AEP; A-/Stable/A-2) announced that it has entered into an agreement to acquire 724 megawatts of wind generation assets with a subsidiary of Sempra Energy for $1.056 billion. S&P Global Ratings considers this acquisition to be in line with AEP's previously announced strategy to invest about $2.2 billion in contracted renewable generation over the next few years. Five of the seven wind projects the company is acquiring are jointly owned with BP Wind Energy. The acquisition price comprises $551 million of cash, $343 million of non-recourse project-level debt, and $162 million of tax equity obligations. The company will fund the cash component with a combination of debt, common equity, and equity-linked instruments and we expect that it will fund the transaction in a credit supportive manner. After this acquisition, non-utility contracted-renewable generation will remain a small component of the company's business...

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