IPO - KENTUCKY POWER CO

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.

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