By Wendy Van Sickle
Columbus, Ohio, March 25 – Union Electric Co., doing business as Ameren Missouri, priced $500 million of 5.2% first mortgage bonds with a 10-year tenor (A2/A) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The bonds priced at 99.685 to yield 5.241%, or at Treasuries plus 98 basis points.
BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc are the bookrunners.
Proceeds will be used to fund capital expenditures and/or refinance short-term debt. On March 22, short-term debt consisted of $227.4 million of commercial paper with maturities of up to 11 days and a weighted-average interest rate of 5.53%, and $166.4 million in overnight borrowings under the Ameren utility money pool with a weighted-average interest rate of 5.33%.
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: | $500 million
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| Issue: | First mortgage bonds
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| Maturity: | April 1, 2034
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| Bookrunners: | BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc
|
| Co-managers: | KeyBanc Capital Markets Inc., Penserra Securities LLC, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Morgan, Lewis & Bockius LLP (New York law) and in-house counsel (Missouri law)
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| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
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| Coupon: | 5.2%
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| Price: | 99.685
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| Yield: | 5.241%
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| Spread: | Treasuries plus 98 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps until Jan. 1, 2034; thereafter at par
|
| Trade date: | March 25
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| Settlement date: | April 4
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| Ratings: | Moody’s: A2
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| S&P: A
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| Distribution: | SEC registered
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| Cusip: | 906548CY6
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