Ameren $300 million mandatory convertibles talked at 9.25-9.75% yield, up 18-22

By Ronda Fears

Nashville, Tenn., Feb. 19 - Ameren Corp.'s $300 million of mandatory convertibles emerged with price talk putting the yield at 9.25% to 9.75% with an 18% to 22% initial conversion premium. Goldman Sachs & Co. is book-running lead manager of the deal, which is set to price next week. Joint lead manager is Lehman Brothers.

The 3.25-year issue will have a par of $25 and will be non-callable. Co-managers of the convertible offering are Banc of America Securities and JPMorgan.

St. Louis, Mo.-based Ameren, a regional public utility holding company serving electric and natural gas customers in Missouri and Illinois, is also selling 5 million common shares aimed at raising another $200 million. Proceeds are earmarked to repay short-term debt, including that of subsidiaries, and for general corporate purposes.

Ameren shares closed off 90c to $41.10.

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