Ameren Illinois Announces Pricing of Green First Mortgage Bonds due 2052

Rhea-AI Summary

Ameren Illinois, a subsidiary of Ameren Corporation (NYSE: AEE), has priced a public offering of $350 million in 5.90% first mortgage bonds set to mature in 2052. The bonds will be sold at 99.691% of their principal value, with the expected closing date on November 22, 2022, pending customary conditions. Proceeds will be allocated to reduce short-term debt and fund sustainable projects. The offering is managed by BofA Securities, Goldman Sachs, RBC Capital Markets, TD Securities, and PNC Capital Markets.

Positive

• The offering of $350 million in bonds provides liquidity for Ameren Illinois to pay down short-term debt.
• Allocation of proceeds to sustainable projects aligns with environmental goals, potentially enhancing investor appeal.

Negative

• None.

ST. LOUIS, Nov. 8, 2022 /PRNewswire/ -- Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), announced today the pricing of a public offering of $350 million aggregate principal amount of 5.90% first mortgage bonds due 2052 at 99.691% of their principal amount.  The transaction is expected to close on Nov. 22, 2022, 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.  Thereafter, Ameren Illinois intends to allocate an amount equal to the net proceeds from the sale of the bonds to sustainable projects meeting certain eligibility criteria.

BofA Securities, Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and PNC Capital Markets 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 TD Securities (USA) LLC, 1 Vanderbilt Avenue, 12th Floor New York, New York 10017, phone: 1-855-495-9846. 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 amount of the bond offering by Ameren Illinois?

Ameren Illinois has announced a public offering of $350 million in first mortgage bonds.

What is the interest rate of the bonds issued by Ameren Illinois?

The bonds have an interest rate of 5.90%.

When is the bond offering by Ameren Illinois expected to close?

The transaction is expected to close on November 22, 2022.

What will the proceeds from the bond offering be used for?

The proceeds will be used to repay a portion of short-term debt and fund sustainable projects.

Who are the managers for the bond offering of Ameren Illinois?

BofA Securities, Goldman Sachs, RBC Capital Markets, TD Securities, and PNC Capital Markets are the joint book-running managers.