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AmerenCIPS likely to redeem preferreds, 7.61% bonds with merger
By Jennifer Chiou
New York, March 15 - Ameren Corp. and Central Illinois Public Service Co., which does business as AmerenCIPS, do not expect to redeem any of their outstanding long-term debt or preferred stock and that of their subsidiaries, with the exception of Central Illinois Light Co.'s preferreds and $40 million of AmerenCIPS' 7.61% series 97-2 first-mortgage bonds, according to an 8-K filing with the Securities and Exchange Commission.
AmerenCIPS, Central Illinois Light (doing business as AmerenCILCO), Illinois Power Co. (doing business as AmerenIP), AmerenEnergy Resources Generating Co. and Ameren Energy Resources Co., LLC intend to file an application with the Federal Energy Regulatory Commission requesting authorizations related to a two-step corporate reorganization of Ameren, the filing added.
The first step of the reorganization would merge AmerenCILCO and Illinois Power with and into Central Illinois Public Service, which would then be renamed Ameren Illinois Co., the 8-K said.
The second step of the reorganization would involve the distribution of AmerenEnergy Resources stock from Ameren Illinois to Ameren and the subsequent contribution by Ameren of the AmerenEnergy Resources stock to Ameren Energy Resources.
Ameren, a St. Louis utility company, added in the filing that following the redemption of the 7.61% mortgage bonds, AmerenCIPS intends to cause a release date to occur for its senior secured notes, causing these notes to become unsecured and AmerenCIPS' mortgage indenture to be discharged.
Meanwhile, the senior secured notes of Illinois Power and AmerenCILCO will still be secured by the mortgage bonds held by their respective senior note trustee.
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