Published on 8/15/2022 in the Prospect News Investment Grade Daily.
New Issue: Ameren Illinois sells $500 million 3.85% first mortgage bonds due 2032
By Marisa Wong
Los Angeles, Aug. 15 – Ameren Illinois Co. priced $500 million of 3.85% first mortgage bonds due Sept. 1, 2032 (expected: A1/A) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The bonds priced at 99.827 to yield 3.871%, or a spread of 108 basis points over Treasuries.
The bonds will be callable at a make-whole price until three months prior to maturity and then are callable at par.
BNY Mellon Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used to repay the company’s $400 million 2.7% secured notes at maturity on Sept. 1, 2022 and to repay a portion of the company’s short-term debt, according to a 424B3 previously filed with the SEC. As of Aug. 12, the company’s short-term debt consisted of commercial paper totaling $179.3 million with maturities of up to 17 days and a weighted-average interest rate of 2.64%.
Ameren Illinois is a subsidiary of St. Louis-based electric and natural gas company Ameren Corp.
| Issuer: | Ameren Illinois Co.
|
| Amount: | $500 million
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| Issue: | First mortgage bonds
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| Maturity: | Sept. 1, 2032
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| Joint bookrunners: | BNY Mellon Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | CastleOak Securities, LP, Penserra Securities LLC, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
|
| 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
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| Coupon: | 3.85%
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| Price: | 99.827
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| Yield: | 3.871%
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| Spread: | Treasuries plus 108 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to June 1, 2032; par call after that
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| Trade date: | Aug. 15
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| Settlement date: | Aug. 29
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| Expected ratings: | Moody’s: A1
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| S&P: A
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| Distribution: | SEC registered
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| Cusip: | 02361DAY6
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