Published on 11/29/2016 in the Prospect News Investment Grade Daily.
New Issue: Ameren Illinois prices $240 million tap of 4.15% 30-year notes with 100 bps spread
By Cristal Cody
Eureka Springs, Ark., Nov. 29 – Ameren Illinois Co. priced a $240 million add-on to its 4.15% senior secured notes due March 15, 2046 at 102.753 to yield 3.988% on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (A1/A) priced with a spread of 100 basis points over Treasuries.
The deal was upsized from $225 million.
BofA Merrill Lynch, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used to repay short-term debt.
The company originally sold $250 million of the notes on Dec. 7, 2015 at 99.001 to yield 4.209%, or 125 bps over Treasuries.
Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.
| Issuer: | Ameren Illinois Co.
|
| Amount: | $240 million reopening
|
| Description: | Senior secured notes
|
| Maturity: | March 15, 2046
|
| Bookrunners: | BofA Merrill Lynch, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC
|
| Co-managers: | Goldman Sachs & Co., KeyBanc Capital Markets Inc., SMBC Nikko Securities America, Inc., Drexel Hamilton, LLC, Williams Capital Group LP
|
| Coupon: | 4.15%
|
| Price: | 102.753
|
| Yield: | 3.988%
|
| Spread: | Treasuries plus 100 bps
|
| Call feature: | Make-whole call before Sept. 15, 2045 at Treasuries plus 20 bps; on or after Sept. 15, 2045 at par
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 6
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
| Total outstanding: | $490 million, including $250 million priced Dec. 7, 2015 at 125 bps over Treasuries
|
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