Ameren Illinois Announces Pricing of First Mortgage Bonds due 2055

Rhea-AI Summary

Ameren Illinois Company, a subsidiary of Ameren (NYSE: AEE), has announced the pricing of a $350 million public offering of 5.625% first mortgage bonds due 2055 at 99.986% of their principal amount. The transaction is expected to close on March 3, 2025, pending customary closing conditions.

The company plans to use the net proceeds to repay $300 million principal amount of its 3.25% senior secured notes due 2025 and to refinance a portion of its short-term debt. BNY Capital Markets, BofA Securities, Morgan Stanley & Co., and Truist Securities are serving as joint book-running managers for the offering.

Ameren Illinois delivers energy to 1.2 million electric and more than 800,000 natural gas customers throughout central and southern Illinois, covering over 1,200 communities and 43,700 square miles.

Positive

• Ameren Illinois is refinancing debt at a higher interest rate (5.625% vs. 3.25%), which may indicate strong market confidence in the company's long-term prospects
• The 30-year bond maturity (due 2055) provides Ameren Illinois with long-term capital stability

Negative

• The new bonds carry a significantly higher interest rate (5.625%) compared to the notes being repaid (3.25%), which will increase long-term interest expenses

ST. LOUIS, Feb. 24, 2025 /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 5.625% first mortgage bonds due 2055 at 99.986% of their principal amount. The transaction is expected to close on March 3, 2025, subject to the satisfaction of customary closing conditions.

Ameren Illinois intends to use the net proceeds of the offering to repay $300 million principal amount of its 3.25% senior secured notes due 2025 and to refinance a portion of its short-term debt. 

BNY Mellon Capital Markets, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and Truist 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 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 BNY Mellon Capital Markets, LLC, 240 Greenwich Street, 3rd Floor, New York, New York 10286, Attn: Debt Capital Markets, phone: 1-800-269-6864. 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 more than 800,000 natural gas customers throughout central and southern Illinois. Our service territory covers more than 1,200 communities and 43,700 square miles and our mission is to power the quality of life. For more information, visit Ameren.com/Illinois or follow us on X at @AmerenIllinois or Facebook.com/AmerenIllinois.

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SOURCE Ameren Corporation

FAQ

What is the interest rate on Ameren Illinois' new mortgage bonds (AEE)?

Ameren Illinois' new first mortgage bonds will carry an interest rate of 5.625% and are due in 2055. The bonds were priced at 99.986% of their principal amount.

When will Ameren Illinois' (AEE) $350 million bond offering close?

The $350 million bond offering is expected to close on March 3, 2025, subject to the satisfaction of customary closing conditions.

How will Ameren Illinois (AEE) use the proceeds from its 2055 bond offering?

Ameren Illinois intends to use the net proceeds to repay $300 million principal amount of its 3.25% senior secured notes due 2025 and to refinance a portion of its short-term debt.

Who are the book-running managers for Ameren Illinois' (AEE) 2055 bond offering?

BNY Capital Markets, , BofA Securities, Inc., Morgan Stanley & Co. , and Truist Securities, Inc. are acting as joint book-running managers for the offering.

What is the total principal amount of Ameren Illinois' (AEE) first mortgage bonds due 2055?

Ameren Illinois announced a public offering of $350 million aggregate principal amount of 5.625% first mortgage bonds due 2055.

How many customers does Ameren Illinois (AEE) serve in its territory?

Ameren Illinois delivers energy to 1.2 million electric customers and more than 800,000 natural gas customers throughout central and southern Illinois, covering more than 1,200 communities.