Published on 1/3/2024 in the Prospect News Investment Grade Daily.
New Issue: Union Electric sells $350 million 5.25% mortgage bonds due 2054
By Wendy Van Sickle
Columbus, Ohio, Jan. 3 – Union Electric Co., doing business as Ameren Missouri, priced $350 million of 5.25% first mortgage bonds with a 30-year tenor (A2/A) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The bonds priced at 99.267 to yield 5.299%, or at Treasuries plus 123 basis points.
The bonds will be callable at a make-whole price of Treasuries plus 25 bps up until six months prior to maturity, and then they will be callable at par.
BofA Securities, Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc. are the bookrunners.
Proceeds will be used to fund capital expenditures or refinance short-term debt.
A St. Louis-based subsidiary of Ameren Corp., Ameren Missouri operates a rate-regulated electric generation, transmission and distribution business and a rate-regulated natural gas distribution business in Missouri.
| Issuer: | Union Electric Co.
|
| Amount: | $350 million
|
| Issue: | First mortgage bonds
|
| Maturity: | Jan. 15, 2054
|
| Bookrunners: | BofA Securities, Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc.
|
| Co-managers: | Academy Securities, Inc., C.L. King & Associates, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Morgan, Lewis & Bockius LLP (New York law) and in-house counsel (Missouri law)
|
| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
|
| Coupon: | 5.25%
|
| Price: | 99.267
|
| Yield: | 5.299%
|
| Spread: | Treasuries plus 123 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until July 15, 2053; thereafter at par
|
| Trade date: | Jan. 3
|
| Settlement date: | Jan. 9
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Cusip: | 906548CX8
|
|
|
© 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.
