Ameren Illinois Announces Pricing of Green First Mortgage Bonds due 2051 and First Mortgage Bonds due 2023

Rhea-AI Summary

Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), has priced a public offering of $350 million in 2.90% first mortgage bonds due 2051 and $100 million in 0.375% first mortgage bonds due 2023. The offerings are set to close on June 29, 2021, and the proceeds will be used to repay short-term debt and fund sustainable projects. Joint book-running managers include RBC Capital Markets and Wells Fargo Securities. This release does not constitute an offer to sell or solicitation.

Positive

• Pricing of $350 million in long-term bonds indicates continued investment and financial stability.
• Proceeds will be allocated to sustainable projects, enhancing the company's environmental initiatives.

Negative

• Issuance of debt may concern investors about future repayment and interest rate risks.

ST. LOUIS, June 22, 2021 /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 2.90% first mortgage bonds due 2051 at 99.583% of their principal amount and $100 million aggregate principal amount of 0.375% first mortgage bonds due 2023 at 99.975% of their principal amount.  The transactions are expected to close on June 29, 2021, subject to the satisfaction of customary closing conditions, and are not contingent upon each other.

Ameren Illinois intends to use the net proceeds of the offerings to repay a portion of its short-term debt. Thereafter, Ameren Illinois intends to allocate an amount equal to the net proceeds of the offering of the 2.90% first mortgage bonds due 2051 to sustainable projects meeting certain eligibility criteria.

RBC Capital Markets, LLC, TD Securities (USA) LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc. and U.S. Bancorp Investments, Inc. are acting as joint book-running managers for the offering. Blaylock Van, LLC, CastleOak Securities, L.P., Loop Capital Markets LLC and Penserra Securities LLC are acting as co-managers.

Each offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to each offering will be filed with the Securities and Exchange Commission. Copies of each prospectus supplement and accompanying prospectus, when available, for each offering may be obtained on the Securities and Exchange Commission's website at www.sec.gov, or by contacting Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, email: wfscustomerservice@wellsfargo.com, phone: 1-800-645-3751. 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 amount of the public offering by Ameren Illinois?

Ameren Illinois announced a public offering of $350 million in 2.90% first mortgage bonds and $100 million in 0.375% first mortgage bonds.

When is the closing date for Ameren Illinois' bond offerings?

The transactions are expected to close on June 29, 2021.

What will Ameren Illinois do with the proceeds from the bond offerings?

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

Who are the joint book-running managers for the bond offerings?

Joint book-running managers include RBC Capital Markets, TD Securities, and Wells Fargo Securities.