AEP · American Electric Power Company, Inc.

American Electric Power Company, Inc. (AEP) entered into forward sale agreements and an underwriting agreement to facilitate a registered public offering of its common stock. The transactions involve the sale of borrowed shares by forward purchasers to underwriters, with AEP receiving net proceeds only if it elects physical settlement. The forward sale price is initially $124.968 per share, subject to adjustments based on a floating interest rate and expected dividends. The company expects to physically settle the agreements by May 31, 2028, but retains the right to elect cash or net share settlement, which could result in lower or no proceeds. The forward purchasers have the right to accelerate settlement under certain circumstances, including inability to hedge, dividend declarations, or changes in law, which could force AEP to issue shares and cause dilution. The agreements are documented under ISDA master agreements and are filed as exhibits to the 8-K. This capital-raising structure allows AEP to defer share issuance while locking in a forward price, providing flexibility in managing its equity capital needs.