Ameren Illinois Announces Pricing of First Mortgage Bonds Offering due 2030

Rhea-AI Summary

Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), has announced the pricing of a public offering for $375 million of 1.55% first mortgage bonds due 2030, priced at 99.577% of their principal amount. The offering is expected to close on November 23, 2020, pending customary closing conditions. The net proceeds will be used to repay a portion of the company’s short-term debt. The offering will be managed by Mizuho Securities USA LLC and others, with a prospectus supplement to be filed with the SEC.

Positive

• Issuance of $375 million in bonds could strengthen Ameren Illinois's capital structure.
• Proceeds used to reduce short-term debt, improving financial stability.

Negative

• None.

ST. LOUIS, Nov. 9, 2020 /PRNewswire/ -- Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), announced today the pricing of a public offering of $375 million aggregate principal amount of 1.55% first mortgage bonds due 2030 at 99.577% of their principal amount.  The transaction is expected to close on Nov. 23, 2020, 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.

Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc. are acting as joint book-running managers for the offering. Bancroft Capital, LLC, Blaylock Van, LLC, Cabrera Capital Markets, LLC and Loop Capital Markets LLC are acting as co-managers.

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 SMBC Nikko Securities America, Inc., 277 Park Avenue, New York, New York 10172, by phone at 1-888-868-6856. 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.

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SOURCE Ameren Illinois

FAQ

What is the bond issuance amount for Ameren Illinois?

Ameren Illinois is issuing $375 million of 1.55% first mortgage bonds.

When does the bond offering for Ameren Illinois close?

The bond offering is expected to close on November 23, 2020.

What will Ameren Illinois use the proceeds from the bond offering for?

The proceeds will be used to repay a portion of its short-term debt.

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

Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., and Truist Securities, Inc. are the joint book-running managers.