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Ameren Illinois holders tender $280.59 million of 9.75%, 6.25% notes
By Angela McDaniels
Tacoma, Wash., Aug. 27 - Ameren Corp. subsidiary Ameren Illinois Co. received tenders for $87.1 million principal amount, or 21.8%, of its $400 million 9.75% senior secured notes due 2018 and $193,488,000 principal amount, or 57.4%, of its $337 million 6.25% senior secured notes due 2018, according to a company news release.
All of the tendered notes were accepted for purchase.
The total purchase price was subject to a $450 million cap, excluding interest. The acceptance priority level was one for the 9.75% notes and two for the 6.25% notes.
The tender offer began July 30 and expired at midnight ET on Aug. 24.
For each $1,000 principal amount, Ameren Illinois will pay $1,384.06 for the 9.75% notes and $1,218.36 for the 6.25% notes. These prices include an early tender premium of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on Aug. 10, the early tender date.
Holders will also receive accrued interest up to but excluding the settlement date, which was expected to be Aug. 27.
The company set the purchase prices at 2 p.m. ET on Aug. 13 by reference to the 0.5% Treasury note due July 31, 2017 plus a spread of 225 basis points for the 9.75% notes and 140 bps for the 6.25% notes.
The company will fund the tender offer with the proceeds of its $400 million offering of 2.7% senior secured notes due 2022, which priced Aug. 13 and settled Aug. 20.
In addition, Ameren Illinois announced that it intends to redeem $51.1 million principal amount of outstanding 5.5% pollution control revenue bonds due 2014 on Sept. 6.
The dealer manager for the tender offer was J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811). The depositary and information agent was Global Bondholder Services Corp. (866 470-3700 or 212 430-3774).
Ameren is a public utility holding company based in St. Louis. Ameren Illinois supplies electricity and natural gas to customers in Illinois and is based in Peoria, Ill.
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