Cilcorp terminates offer for 8.7% notes, again extends tender offer for 9 3/8% bonds

By Jennifer Chiou

New York, April 30 - Cilcorp Inc. said it once more extended the tender offer for its $210.57 million of outstanding 9 3/8% senior bonds due 2029 while terminating the offer for its $123.76 million of outstanding 8.7% senior notes due 2009.

The 9 3/8% bonds offer has been prolonged to 5 p.m. ET on July 31 from April 30. The deadline was previously Jan. 30. The consent solicitation for the bonds is also extended to July 31.

When the offer began on Sept. 3, 2008, it was scheduled to expire on Sept. 30, 2008 and the consent deadline was Sept. 16, 2008. The tender offer and consent deadline have been extended a total of five and four times, respectively.

As of 5 p.m. ET on April 29, Cilcorp had received tenders and consents from holders of $206.7 million, or 98.2%, of the 9 3/8% bonds, slightly changed from Jan. 28, when the company received tenders for 98.1% of the bonds.

The tenders received for the 8.7% notes will be returned.

On Nov. 19, Cilcorp had received tenders and consents from holders of $122.8 million, or 99.3%, of the 8.7% notes and $206.7 million, or 98.2%, of the 9 3/8% bonds.

The company is soliciting consents to amend the indenture governing the notes to eliminate some restrictive covenants.

Cilcorp needed consents from holders of at least a majority of the notes in order to amend the indentures. Holders cannot tender their notes without delivering consent and vice versa.

For each $1,000 principal amount of 8.7% notes, the payout was to be $1,057.50 plus accrued interest to the settlement date. This payout included a $40.00 consent fee.

For each $1,000 principal amount of 9 3/8% bonds, the payout will be $1,230.00 plus accrued interest to the settlement date. This payout includes a $50.00 consent fee.

Consummation of the tender offer and the consent solicitation is subject to conditions that include the absence of certain adverse legal and market developments and receipt of the needed consents.

J.P. Morgan Securities Inc. (212 834-4802 or 866 834-4666) is the dealer manager, and Global Bondholder Services Corp. (212 430-3774 or 866 857-2200) is the information agent.

Cilcorp is an Ameren Corp. subsidiary based in Peoria, Ill., that operates as a holding company for Central Illinois Light Co. and a non-rate-regulated subsidiary.

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