Ameren Illinois Announces Pricing of First Mortgage Bonds due 2033

Rhea-AI Summary

Ameren Illinois Company, a subsidiary of Ameren Corporation, has announced the pricing of a public offering of $500 million aggregate principal amount of 4.95% first mortgage bonds due 2033. The transaction is expected to close on May 31, 2023. The net proceeds will be used to repay short-term debt and $100 million principal amount of its 0.375% first mortgage bonds due June 15, 2023.

Positive

• Ameren Illinois Company has successfully priced a public offering of $500 million first mortgage bonds due 2033.
• The bonds were priced at 99.696% of their principal amount, with a 4.95% interest rate.
• The offering is expected to close on May 31, 2023, subject to customary closing conditions.
• The net proceeds from the offering will be used to repay a portion of Ameren Illinois' short-term debt and $100 million principal amount of its 0.375% first mortgage bonds due June 15, 2023, at maturity.

Negative

• None.

ST. LOUIS, May 23, 2023 /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 4.95% first mortgage bonds due 2033 at 99.696% of their principal amount.  The transaction is expected to close on May 31, 2023, subject to the satisfaction of customary closing conditions.

Ameren Illinois intends to use the net proceeds of the offering to repay a portion of its short-term debt and to repay $100 million principal amount of its 0.375% first mortgage bonds due June 15, 2023, at maturity. 

MUFG Securities Americas Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Fifth Third Securities, Inc. 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 MUFG Securities Americas Inc., 1221 Avenue of the Americas, 6th Floor, New York, NY 10020, Attn: Capital Markets Group, phone: 1-877-649-6848. 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ameren-illinois-announces-pricing-of-first-mortgage-bonds-due-2033-301832788.html

SOURCE Ameren Corporation

FAQ

What is the purpose of Ameren Illinois' public offering?

The net proceeds from the offering will be used to repay a portion of Ameren Illinois' short-term debt and $100 million principal amount of its 0.375% first mortgage bonds due June 15, 2023, at maturity.

What is the interest rate of the first mortgage bonds?

The first mortgage bonds have an interest rate of 4.95%.

When is the expected closing date of the offering?

The offering is expected to close on May 31, 2023, subject to customary closing conditions.

Who are the joint book-running managers for the offering?

The joint book-running managers for the offering are MUFG Securities Americas Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc., and Fifth Third Securities, Inc.