Cilcorp terminates tender offer for 9 3/8% senior bonds due 2029

By Jennifer Chiou

New York, July 31 - Cilcorp Inc. said it has terminated its offer for its $210.57 million of outstanding 9 3/8% senior bonds due 2029.

The company previously terminated the offer for its $123.76 million of outstanding 8.7% senior notes due 2009 on April 30.

At that time, the 9 3/8% bonds offer had 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 had also been 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 were extended a total of five and four times, respectively.

At 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 as will tenders for the 9 3/8% securities.

On Nov. 19, 2008, 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 was 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.

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 was to be $1,230.00 plus accrued interest to the settlement date. This payout included a $50.00 consent fee.

Consummation of the tender offer and the consent solicitation had been subject to conditions that included 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) was the dealer manager, and Global Bondholder Services Corp. (212 430-3774 or 866 857-2200) was 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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