IPO - KENTUCKY POWER CO

Form Type: SF-1/A

Filing Date: 2025-05-16

Corporate Action: Ipo

Type: Update

Accession Number: 000119312525121765

Filing Summary: Kentucky Power Company is filing an amendment to their registration statement for the proposed offering of $477,749,000 of Series 2025 Senior Secured Recovery Bonds. The bonds are to be sold with the purpose of acquiring Cost Recovery Property from Kentucky Power Company. The bonds will be backed by the right to impose cost recovery charges from retail customers, controlled under a regulatory Financing Order by the Kentucky Public Service Commission. The statement details the responsibilities of both Kentucky Power Company and its finance subsidiary, Kentucky Power Cost Recovery LLC, in servicing and repaying the bonds. The financing aims to enhance the companies' capacity by allowing periodic adjustments of charges based on a true-up mechanism to ensure sufficient revenue collection for principal and interest payments. Legal structures and protections for investors are discussed, highlighting the bankruptcy-remote nature of the bond issuer and the obligations of the Kentucky Public Service Commission in securing the bonds' repayment.

Form Type: SF-1

Filing Date: 2025-01-02

Corporate Action: Ipo

Type: New

Accession Number: 000119312525000566

Filing Summary: Kentucky Power Company and Kentucky Power Cost Recovery LLC have filed a registration statement for the issuance of 2025 Senior Secured Recovery Bonds. The proceeds from the bonds will be used to recover various costs incurred by Kentucky Power Company, including plant retirement costs, deferred storm costs, and under-recovered purchased power rider costs. The bonds will be secured by cost recovery property, which includes the right to impose and collect utility charges from customers and a true-up mechanism to ensure sufficient revenues for bond repayments. The bonds are not a general obligation of the Commonwealth of Kentucky; instead, they are secured through a financing order approved by the Kentucky Public Service Commission. This transaction is structured to be bankruptcy remote, ensuring that the assets are solely available for bond repayment. The bonds are expected to offer advantages in financing costs compared to unsecured debt and will accrue interest semi-annually, commencing from a specified date in 2025. The issuance process is supported by independent management and state agencies, with guarantees in place to protect bondholders' interests.