Ameren Illinois Announces Pricing of First Mortgage Bonds due 2055

Rhea-AI Summary

Ameren Illinois, a subsidiary of Ameren Corporation (NYSE: AEE), has priced a public offering of $350 million in first mortgage bonds due 2055 at 103.196% of their principal amount, with a re-offer yield of 5.405%.

These bonds represent a further issuance of the company's 5.625% first mortgage bonds originally issued in March 2025. The transaction is expected to close on September 26, 2025. The company plans to use the net proceeds to repay a portion of its short-term debt. The offering is being managed by KeyBanc Capital Markets, TD Securities, U.S. Bancorp Investments, and Fifth Third Securities.

Positive

• Additional $350 million in long-term financing secured through mortgage bonds
• Attractive 5.405% re-offer yield in current market conditions
• Strategic debt refinancing to reduce short-term debt exposure

Negative

• Increased long-term debt obligation with extended maturity until 2055
• Premium pricing at 103.196% of principal amount

News Market Reaction

-1.90%

1 alert

-1.90% News Effect

On the day this news was published, AEE declined 1.90%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

ST. LOUIS, Sept. 15, 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 103.196% of their principal amount, with a re-offer yield of 5.405%.  The first mortgage bonds will be a further issuance of Ameren Illinois' 5.625% first mortgage bonds due 2055 issued on March 3, 2025, in the principal amount of $350 million.  The transaction is expected to close on September 26, 2025, 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. 

KeyBanc Capital Markets Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Fifth Third 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 U.S. Bancorp Investments, Inc., 214 N. Tryon Street, 26th Floor, Charlotte, North Carolina 28202, Attn: Investment Grade Syndicate, phone: 1-877-558-2607. 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 Illinois

FAQ

What is the size and yield of Ameren Illinois's (AEE) new bond offering in 2025?

Ameren Illinois is offering $350 million in first mortgage bonds with a 5.625% interest rate and a re-offer yield of 5.405%.

When will Ameren Illinois's (AEE) 2025 mortgage bond offering close?

The bond offering is expected to close on September 26, 2025, subject to customary closing conditions.

How will Ameren Illinois use the proceeds from its 2025 bond offering?

Ameren Illinois intends to use the net proceeds from the bond offering to repay a portion of its short-term debt.

Who are the joint book-running managers for Ameren Illinois's 2025 bond offering?

The joint book-running managers are KeyBanc Capital Markets, TD Securities, U.S. Bancorp Investments, and Fifth Third Securities.

What is the maturity date of Ameren Illinois's new mortgage bonds?

The first mortgage bonds are due in 2055, representing a 30-year maturity from their original issuance in March 2025.