aep8k101008.htm
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
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Date
of report (Date of earliest event reported)
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October
8, 2008
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AMERICAN
ELECTRIC POWER COMPANY, INC.
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(Exact
Name of Registrant as Specified in Its Charter)
(State or
Other Jurisdiction of Incorporation)
(Commission
File
Number) (IRS
Employer Identification No.)
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1
Riverside Plaza, Columbus,
OH 43215
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(Address
of Principal Executive
Offices) (Zip
Code)
(Registrant's
Telephone Number, Including Area Code)
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction
A.2. below):
[
] Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
[
] Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[
]
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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[ ]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.03 Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of a Registrant
As
described further below, on October 8, 2008, American Electric Power Company,
Inc (“AEP”) borrowed a total of approximately $1,400,000,000 under its existing
credit facilities. AEP took this proactive step to increase its cash
position while there are disruptions in the debt markets. The borrowings provide
AEP flexibility and will act as a bridge until the capital markets
improve.
On
October 8, 2008, AEP borrowed a total of approximately $700,000,000 under the
$1,500,000,000 Second Amended and Restated Credit Agreement dated March 31, 2008
(the “2011 Credit Agreement”), among AEP, as Borrower, the Lenders parties
thereto and JPMorgan Chase Bank, N.A., as Administrative Agent. Commitments
under the 2011 Credit Agreement expire on March 30, 2011. This loan
is a Base Rate Advance and bears interest at the Base Rate (as such terms are
defined in the 2011 Credit Agreement), and is due and payable on March 30,
2011. The total borrowings currently outstanding under the 2011
Credit Agreement is approximately $1,000,000,000. All or a portion of
these loans may be prepaid in advance of the due date. Subject to the
terms and conditions of the 2011 Credit Agreement, funds are available for
borrowing under the facility through the day prior to the expiration
date.
On
October 8, 2008, AEP borrowed a total of approximately $700,000,000 under the
$1,500,000,000 Second Amended and Restated Credit Agreement dated March 31, 2008
(the “2012 Credit Agreement”, and together with the 2011 Credit Agreement, the
“Credit Agreements”), among AEP, as Borrower, the Lenders parties thereto and
Barclays Bank PLC, as Administrative Agent. Commitments under the 2012 Credit
Agreement expire on April 6, 2012. The loan is a Base Rate Advances
and bears interest at the Base Rate (as such term is defined in the 2012 Credit
Agreement), and is due and payable on April 6, 2012. The total
borrowings currently outstanding under the 2012 Credit Agreement is
approximately $1,000,000,000. All or a portion of these loans may be
prepaid in advance of the due date. Subject to the terms and
conditions of the 2012 Credit Agreement, funds are available for borrowing under
the facility through the day prior to the expiration date.
Please
see our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, for a
description of the Credit Agreements.
Item
8.01 Other Events
Item
9.01. Financial Statements and Exhibits
(d) Exhibit
No.
Exhibit
99.1 Letter to Our Investment Community dated October
10, 2008
This
report made by AEP contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. Although AEP
believes that its expectations are based on reasonable assumptions, any such
statements may be influenced by factors that could cause actual outcomes and
results to be materially different from those projected. Among the
factors that could cause actual results to differ materially from those in the
forward-looking statements are:
Electric
load and customer growth; weather conditions, including storms; available
sources and costs of, and transportation for, fuels and the creditworthiness of
fuel suppliers and transporters; availability of generating capacity and the
performance of AEP’s generating plants; the ability to recover regulatory assets
and stranded costs in connection with deregulation; the ability to recover
increases in fuel and other energy costs through regulated or competitive
electric rates; the ability to build or acquire generating capacity when needed
at acceptable prices and terms and to recover those costs through applicable
rate cases; new legislation, litigation and government regulation including
requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and
other substances; timing and resolution of pending and future rate cases,
negotiations and other regulatory decisions (including rate or other recovery
for new investments, transmission service and environmental compliance);
resolution of litigation (including pending Clean Air Act enforcement actions
and disputes arising from the bankruptcy of Enron Corp.); AEP’s ability to
constrain its operation and maintenance costs; AEP’s ability to sell assets at
acceptable prices and on other acceptable terms, including rights to share in
earnings derived from the assets subsequent to their sale; the economic climate
and growth in its service territory and changes in market demand and demographic
patterns; inflationary trends; its ability to develop and execute a strategy
based on a view regarding prices of electricity, natural gas and other
energy-related commodities; changes in the creditworthiness and number of
participants in the energy trading market; changes in the financial markets,
particularly those affecting the availability of capital and AEP’s ability to
refinance existing debt at attractive rates; actions of rating agencies,
including changes in the ratings of debt; volatility and changes in markets for
electricity, natural gas and other energy-related commodities; changes in
utility regulation, including membership and integration into regional
transmission structures; accounting pronouncements periodically issued by
accounting standard-setting bodies; the performance of AEP’s pension and other
postretirement benefit plans; prices for power that AEP generates and sells at
wholesale; changes in technology, particularly with respect to new, developing
or alternative sources of generation and other risks and unforeseen events,
including wars, the effects of terrorism (including increased security costs),
embargoes and other catastrophic events.
SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
AMERICAN ELECTRIC POWER COMPANY,
INC.
By: /s/ Thomas G.
Berkemeyer
Name: Thomas G.
Berkemeyer
Title: Assistant
Secretary
October
10, 2008
EXHIBIT
INDEX
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Exhibit No.
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Description
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99.1
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Letter
to Our Investment Community dated October 10,
2008
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