Published on 11/16/2017 in the Prospect News Investment Grade Daily.
New Issue: Ameren Illinois prices $500 million 3.7% 30-year mortgage bonds at 93 bps spread
By Cristal Cody
Tupelo, Miss., Nov. 16 – Ameren Illinois Co. priced $500 million of 3.7% 30-year first mortgage bonds (A1/A) at a spread of Treasuries plus 93 basis points on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The bonds (A1/A) tightened in from initial price talk in the Treasuries plus 105 bps area.
The bonds were sold at 99.282 to yield 3.74%.
J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, BNP Paribas Securities Corp., KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used to repay short-term debt, including debt incurred in connection with the repayment at maturity of $250 million of 6.125% senior notes due Nov. 15, 2017.
Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.
| Issuer: | Ameren Illinois Co.
|
| Amount: | $500 million
|
| Description: | First mortgage bonds
|
| Maturity: | Dec. 1, 2047
|
| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, BNP Paribas Securities Corp., KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, U.S. Bancorp Investments, Inc., Blaylock Van, LLC, C.L. King & Associates, Inc. and Loop Capital Markets LLC
|
| Coupon: | 3.7%
|
| Price: | 99.282
|
| Yield: | 3.74%
|
| Spread: | Treasuries plus 93 bps
|
| Call feature: | Make-whole call before June 1, 2047 at greater of par or Treasuries plus 15 bps; thereafter at par
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 28
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 105 bps area
|
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