Ameren Illinois Announces Pricing of First Mortgage Bonds due 2032

Rhea-AI Summary

Ameren Illinois, a subsidiary of Ameren Corporation (NYSE: AEE), has priced a public offering of $500 million in 3.85% first mortgage bonds due 2032, priced at 99.827% of their principal amount. The deal's closing is set for Aug. 29, 2022, subject to standard conditions. The net proceeds will be used to repay $400 million in 2.70% senior secured notes due on Sept. 1, 2022, and reduce short-term debt. Major financial institutions are managing the offering.

Positive

• Successful pricing of $500 million in first mortgage bonds, indicating strong investor interest.
• Reduction of financial liabilities by repaying $400 million in existing debt.

Negative

• None.

ST. LOUIS, Aug. 15, 2022 /PRNewswire/ -- Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), announced today the pricing of a public offering of $500 million aggregate principal amount of 3.85% first mortgage bonds due 2032 at 99.827% of their principal amount.  The transaction is expected to close on Aug. 29, 2022, subject to the satisfaction of customary closing conditions.

Ameren Illinois intends to use the net proceeds of the offering to repay at maturity $400 million principal amount of its 2.70% senior secured notes due Sept. 1, 2022, and to repay a portion of its short-term debt.

BNY Mellon Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering.

The offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. Copies of the prospectus supplement and accompanying prospectus, when available, for the offering may be obtained on the Securities and Exchange Commission's website at www.sec.gov, or by contacting Mizuho Americas LLC, 1271 Avenue of the Americas, 3rd Floor, New York, NY 10020, Attention: Debt Capital Markets, phone: 1-866-271-7403. This press release does not constitute an offer to sell or a solicitation of an offer to buy the first mortgage bonds and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.

About Ameren Illinois
Ameren Illinois delivers energy to 1.2 million electric and 800,000 natural gas customers in Illinois. Our mission is to power the quality of life. Our service territory covers more than 1,200 communities and 43,700 square miles. For more information, visit AmerenIllinois.com, find us on Twitter @AmerenIllinois or Facebook.com/AmerenIllinois.

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SOURCE Ameren Corporation

FAQ

What is the purpose of Ameren Illinois's bond offering on August 15, 2022?

Ameren Illinois plans to use the net proceeds to repay $400 million of its senior secured notes and reduce short-term debt.

When will the Ameren Illinois bond offering close?

The closing of the bond offering is expected on August 29, 2022.

What are the terms of Ameren Illinois's first mortgage bonds due 2032?

The bonds have a 3.85% interest rate and are priced at 99.827% of their principal amount.

How much is Ameren Illinois raising through its bond offering?

Ameren Illinois is raising $500 million through the public offering of first mortgage bonds.

Who are the joint book-running managers for the Ameren Illinois bond offering?

BNY Mellon Capital Markets, Mizuho Securities USA, Morgan Stanley, Truist Securities, and Wells Fargo Securities are managing the offering.