8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMEREN CORP 8-K Report, Material Agreement (Jul 15, 2005)

Filed July 15, 2005For Securities:AEE

Summary

This 8-K filing from Ameren Corporation (AEE) announces the entry into a new $1.150 billion five-year revolving credit facility, the "Ameren Companies July 2005 Revolving Credit Agreement," effective July 14, 2005. This new facility replaces and terminates several previously existing credit agreements without incurring early termination penalties. It provides significant borrowing capacity for Ameren and its subsidiaries, Union Electric Company (UE), Central Illinois Public Service Company (CIPS), Central Illinois Light Company (CILCO), Ameren Energy Generating Company (Genco), and Illinois Power Company (IP). The new credit agreement offers flexibility through various loan types (revolving, competitive, and swingline) and interest rate options (ABR or Eurodollar rate plus applicable margins). Key terms include specific sub-limits for individual subsidiaries, a financial covenant limiting total indebtedness to 65% of total capitalization (60% for CILCO), and standard default provisions, including a cross-default clause for significant indebtedness. The proceeds from borrowings under this facility are intended for general corporate purposes, including working capital, commercial paper liquidity, and to repay amounts outstanding under the terminated credit agreements. Additionally, Ameren has amended and restated its prior $350 million credit agreement to align its terms with the new facility, extending its maturity to July 14, 2010.

Key Highlights

  • 1Ameren Corporation and its subsidiaries entered into a new $1.150 billion five-year revolving credit facility on July 14, 2005.
  • 2This new facility replaces and terminates prior credit agreements without incurring early termination penalties.
  • 3The credit facility offers flexibility with multiple loan types (revolving, competitive, swingline) and interest rate options.
  • 4The facility has specific borrowing sub-limits for subsidiaries, with up to $500 million available for Union Electric Company (UE) and up to $150 million for other subsidiaries (excluding UE).
  • 5A financial covenant limits total indebtedness to 65% of total capitalization for most subsidiaries, and 60% for CILCO.
  • 6The credit agreement includes standard covenants and default provisions, such as a cross-default clause for significant indebtedness.
  • 7Proceeds from the new facility will be used for general corporate purposes, including working capital, liquidity support, and repaying existing debt.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce Ameren Corporation and its subsidiaries entering into a new, larger revolving credit facility and the termination of older, smaller credit agreements. This is a material event impacting the company's financing and liquidity.

The new Ameren Companies July 2005 Revolving Credit Agreement provides for loans and letters of credit up to a total amount of $1.150 billion. The commitments for Ameren expire and borrowings mature on July 14, 2010. For its subsidiaries, borrowings will mature at the end of a 364-day period, with potential for annual extensions.

The new credit facility effectively replaces and terminates several previous credit agreements, including a $235 million amended and restated agreement and a $350 million agreement. This transition occurred without Ameren incurring any early termination penalties.

Proceeds from borrowings under this facility are designated for general corporate purposes. This includes supporting working capital needs, providing liquidity for commercial paper, and repaying any outstanding amounts from the credit agreements that were terminated or replaced.