Published on 8/15/2022 in the Prospect News Investment Grade Daily.
New Issue: Ameren Illinois sells $500 million 3.85% first mortgage bonds due 2032
By Marisa Wong
Los Angeles, Aug. 15 – Ameren Illinois Co. priced $500 million of 3.85% first mortgage bonds due Sept. 1, 2032 (expected: A1/A) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The bonds priced at 99.827 to yield 3.871%, or a spread of 108 basis points over Treasuries.
The bonds will be callable at a make-whole price until three months prior to maturity and then are callable at par.
BNY Mellon Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used to repay the company’s $400 million 2.7% secured notes at maturity on Sept. 1, 2022 and to repay a portion of the company’s short-term debt, according to a 424B3 previously filed with the SEC. As of Aug. 12, the company’s short-term debt consisted of commercial paper totaling $179.3 million with maturities of up to 17 days and a weighted-average interest rate of 2.64%.
Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.
Issuer: | Ameren Illinois Co.
|
Amount: | $500 million
|
Issue: | First mortgage bonds
|
Maturity: | Sept. 1, 2032
|
Joint bookrunners: | BNY Mellon Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC
|
Co-managers: | CastleOak Securities, LP, Penserra Securities LLC, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
|
Trustee: | Bank of New York Mellon Trust Co., NA
|
Counsel to issuer: | Morgan, Lewis & Bockius LLP and in-house counsel
|
Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
|
Coupon: | 3.85%
|
Price: | 99.827
|
Yield: | 3.871%
|
Spread: | Treasuries plus 108 bps
|
Call features: | Make-whole call at Treasuries plus 20 bps prior to June 1, 2032; par call after that
|
Trade date: | Aug. 15
|
Settlement date: | Aug. 29
|
Expected ratings: | Moody’s: A1
|
| S&P: A
|
Distribution: | SEC registered
|
Cusip: | 02361DAY6
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.