Published on 5/23/2023 in the Prospect News Investment Grade Daily.
New Issue: Ameren Illinois sells $500 million 4.95% first mortgage bonds due 2033
By Wendy Van Sickle
Columbus, Ohio, May 23 – Ameren Illinois Co. priced $500 million of 4.95% first mortgage bonds due June 1, 2033 (expected: A1/A) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The bonds priced at 99.696 to yield 4.989%, or a spread of 127 basis points over Treasuries.
BNY Mellon Capital Markets, LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Fifth Third Securities, Inc. are the joint bookrunners.
Proceeds will be used to repay a portion of the company’s short-term debt and to repay $100 million principal amount of the 0.375% first mortgage bonds due June 15, 2023 upon maturity. As of May 22, the company’s short-term debt consisted of commercial paper, of which approximately $344 million was outstanding with maturities of up to 18 days and a weighted-average interest rate of 5.32%.
Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.
| Issuer: | Ameren Illinois Co.
|
| Amount: | $500 million
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| Issue: | First mortgage bonds
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| Maturity: | June 1, 2033
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| Joint bookrunners: | MUFG Securities Americas Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Fifth Third Securities, Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, CastleOak Securities, LP, Penserra Securities LLC and Stern Brothers & Co.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Morgan, Lewis & Bockius LLP and in-house
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| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
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| Coupon: | 4.95%
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| Price: | 99.696
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| Yield: | 4.989%
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| Spread: | Treasuries plus 127 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps prior to March 1, 2033; par call after that
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| Trade date: | May 23
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| Settlement date: | May 31
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| Expected ratings: | Moody’s: A1
|
| S&P: A
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| Distribution: | SEC registered
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| Cusip: | 02361DBA7
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