Published on 11/8/2022 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Ameren Illinois prices $350 million 30-year green first mortgage bonds
By Marisa Wong
Los Angeles, Nov. 8 – Ameren Illinois Co. priced $350 million of 5.9% first mortgage bonds due Dec. 1, 2052 (A1/A) at 99.691 to yield 5.922%, or a spread of 163 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The bonds feature a make-whole call until six months prior to maturity and then are callable at par.
BofA Securities, Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and PNC Capital Markets LLC are the joint bookrunners.
Proceeds will be used to repay a portion of the company’s short-term debt, according to a 424B3 filed earlier in the day on Tuesday. As of Nov. 7, the company’s short-term debt consisted of commercial paper, totaling $379 million with maturities of up to 15 days and a weighted-average interest rate of 4.17%, and overnight borrowings under the Ameren utility money pool of approximately $2 million with a weighted-average interest rate of 4.34%.
The company said it intends to allocate, within three years of the issuance of the bonds, an amount equal to the net proceeds to costs incurred for eligible projects related to renewable energy, climate change adaptation, energy efficiency and green innovation.
Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.
| Issuer: | Ameren Illinois Co.
|
| Amount: | $350 million
|
| Issue: | First mortgage bonds
|
| Maturity: | Dec. 1, 2052
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and PNC Capital Markets LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., Scotia Capital (USA) Inc., Cabrera Capital Markets LLC, Drexel Hamilton, LLC, MFR Securities, Inc. and Mischler Financial Group, Inc.
|
| 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: | 5.9%
|
| Price: | 99.691
|
| Yield: | 5.922%
|
| Spread: | Treasuries plus 163 bps
|
| Call option: | Make-whole call at Treasuries plus 25 bps prior to June 1, 2052; par call after that
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 22
|
| Expected ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
| Cusip: | 02361DAZ3
|
|
|
© 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.
