S&P: Ameren stock issue supportive

Standard & Poor's said Thursday that the expected issuance of a public offering of common stock by energy holding company Ameren Corp. (A-/Watch negative/A-2) on Feb. 6 will help to support the post-acquisition consolidated credit quality of Ameren.

The proceeds from the offering will be used to finance the $500 million cash portion of the purchase price for its pending acquisition of Illinois Power Co. (B/Watch positive/--) from Dynegy Inc. and Dynegy's 20% interest in Electric Energy Inc., and to reduce Illinois Power debt assumed as part of the deal.

Ameren has priced an offering of 19 million shares at a public offering price of $49.50 per share. The acquisition is subject to various regulatory approvals and is expected by the end of 2004.

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