Ameren Missouri Announces Pricing of Green First Mortgage Bonds due 2055
Ameren Missouri, a subsidiary of Ameren (NYSE: AEE), has priced a public offering of $450 million aggregate principal amount of 5.125% first mortgage bonds due 2055 at 99.881% of their principal amount.
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Rhea-AI Summary
Ameren Missouri, a subsidiary of Ameren (NYSE: AEE), has priced a public offering of $450 million aggregate principal amount of 5.125% first mortgage bonds due 2055 at 99.881% of their principal amount. The transaction is expected to close on Oct. 7, 2024. The company plans to use the net proceeds to refinance short-term debt and/or fund near-term capital expenditures, with an intention to allocate an equal amount to sustainable projects meeting certain eligibility criteria.
The offering is being managed by Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities , Morgan Stanley & Co. , and KeyBanc Capital Markets Inc. as joint book-running managers. Ameren Missouri, which has been providing electric and gas service for over 100 years, serves 1.2 million electric and 135,000 natural gas customers in central and eastern Missouri.
Positive
- Successful pricing of $450 million green first mortgage bonds
- Bonds priced at 99.881% of principal amount, indicating strong investor interest
- Proceeds to be used for refinancing short-term debt and funding capital expenditures
- Allocation of proceeds to sustainable projects, aligning with ESG trends
Negative
- Increase in long-term debt with 5.125% interest rate until 2055
Details
News Market Reaction – AEE
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Ameren Missouri intends to use the net proceeds of the offering to refinance short-term debt and/or fund near-term capital expenditures. Thereafter, Ameren Missouri intends to allocate an amount equal to the net proceeds to sustainable projects meeting certain eligibility criteria.
Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and KeyBanc Capital Markets 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 and related prospectus supplement for the offering, when available, may be obtained via the Securities and Exchange Commission's website at www.sec.gov or by contacting J.P. Morgan Securities LLC, 383 Madison Avenue,
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 Missouri
Ameren Missouri has been providing electric and gas service for more than 100 years. Ameren Missouri's mission is to power the quality of life for its 1.2 million electric and 135,000 natural gas customers in central and eastern
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SOURCE Ameren Missouri
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