Published on 11/17/2015 in the Prospect News Investment Grade Daily.
New Issue: Ameren sells $700 million of senior notes in tranches due 2020, 2026
By Aleesia Forni
New York, Nov. 17 – Ameren Corp. sold $700 million of senior notes (Baa1/BBB/BBB+) in tranches due 2020 and 2026 on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
There was a $350 million tranche of 2.7% five-year notes priced at 99.977 to yield 2.705%, or Treasuries plus 105 basis points.
And $350 million of 3.65% long 10-year notes sold at 99.911 to yield 3.661% with a spread of 140 bps over Treasuries.
Both tranches sold at the tight side of guidance.
Bookrunners are Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and Mizuho Securities.
The St. Louis-based electric and natural gas company plans to use the proceeds to repay a portion of short-term debt, consisting of commercial paper issuances.
| Issuer: | Ameren Corp.
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Mizuho Securities
|
| Co-managers: | BNP Paribas Securities Corp., KeyBanc Capital Markets, RBC Capital Markets LLC, SMBC Nikko, CastleOak Securities LP, Drexel Hamilton, Ramirez & Co. Inc.
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 24
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $350 million
|
| Maturity: | Nov. 15, 2020
|
| Coupon: | 2.7%
|
| Price: | 99.977
|
| Yield: | 2.705%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 130 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Oct. 15, 2020, then callable at par
|
|
|
| Long 10-year notes
|
| Amount: | $350 million
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 3.65%
|
| Price: | 99.911
|
| Yield: | 3.661%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, tightened from Treasuries plus 140 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Nov. 15, 2025, then callable at par
|
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