By Angela McDaniels
Tacoma, Wash., Sept. 6 - Ameren Corp. subsidiary Union Electric Co., which does business as Ameren Missouri, had received tenders for $249,136,000 of notes as of 5 p.m. ET on Sept. 5, according to a company news release.
Ameren Missouri began a tender offer for its 6% senior secured notes due 2018, 6.7% senior secured notes due 2019, 5.1% senior secured notes due 2018 and 5.1% senior secured notes due 2019 on Aug. 20. It will end at midnight ET on Sept. 19.
The maximum purchase price is $377 million, excluding accrued interest. The notes are listed in order of acceptance priority.
The amount of notes tendered so far and the purchase prices are noted in the table below. In each case, the purchase price includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 5, the early tender date.
The company will also pay accrued interest up to but excluding the settlement date, which is expected to be Sept. 20.
The purchase prices were set using the yield of a reference Treasury security as of 2 p.m. ET on Sept. 6 plus a spread. The reference Treasury was the 0.5% Treasury due July 31, 2017 for the notes due 2018 and the 1.625% Treasury due Aug. 15, 2022 for the notes due 2019. The spread was 95 basis points for the 6% notes, 30 bps for the 6.7% notes, 120 bps for the 5.1% notes due 2018 and 45 bps for the 5.1% notes due 2019.
The company is funding the offer with the proceeds of its $485 million issue of 3.9% senior secured notes due 2042 and available cash.
The dealer manager is Barclays (800 438-3242 or 212 528-7581). The depositary and information agent is Global Bondholder Services Corp. (866 795-2200 or 212 430-3774).
Ameren is a public utility holding company. Ameren Missouri supplies electricity and natural gas to customers in central and eastern Missouri. Both are based in St. Louis.
Results of Ameren Missouri tender offer through early deadline
| Notes | Amount outstanding | Amount tendered | Purchase price
|
| 6% senior secured notes due 2018 | $250 million | $71.48 million | $1,230.98
|
| 6.7% senior secured notes due 2019 | $450 million | $120,717,000 | $1,281.58
|
| 5.1% senior secured notes due 2018 | $200 million | $1,291,000 | $1,178.76
|
| 5.1% senior secured notes due 2019 | $300 million | $55,648,000 | $1,193.69
|
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