If you’re watching American Electric Power Company (AEP) this week, you’re not alone. The company’s recent $1.1 billion fixed-income offering, featuring junior subordinated unsecured notes due in 2056, has put it squarely in the investment spotlight. Adding to the interest, AEP also brought in CIBC World Markets Corp. and Guggenheim Securities, LLC as co-lead underwriters for the deal. For investors weighing the stock, these moves signal AEP is seeking additional capital, raising plenty of questions about what comes next.
Looking back over the past year, AEP’s stock has delivered an 11% total return, with the share price up nearly 19% year to date. While there was a dip in the last month, momentum appears to have returned recently, with gains in both the last week and quarter. Outside of this capital markets activity, however, there haven’t been big headlines or shifts in the utility’s operating environment. This bond…
