8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Jun 1, 2006)

Filed June 1, 2006For Securities:AEE

Summary

Ameren Corporation (AEE) announced on May 30, 2006, plans to revise its committed credit facilities. The company currently has $1.5 billion in credit facilities and is seeking to amend and terminate existing agreements to enter into a new $500 million senior secured credit facility for its Illinois operations. This new facility, expected to be effective by early July 2006, will be a multi-year senior secured credit facility for specific Ameren subsidiaries operating in Illinois. The proposed changes involve amending a $1.15 billion Multi-Borrower Credit Agreement and establishing a new, separate $500 million "Illinois Facility." The Illinois utilities will transition from the multi-borrower agreement to the new Illinois Facility, which will have different covenants and security arrangements. While the overall borrowing capacity for Ameren remains substantial, this restructuring aims to align credit terms with the specific needs and regulatory environments of its Illinois subsidiaries.

Key Highlights

  • 1Ameren is revising its existing $1.5 billion committed credit facilities.
  • 2A new, separate $500 million multi-year senior secured credit facility (the "Illinois Facility") is being established for Ameren's Illinois operations.
  • 3The Illinois Facility is expected to be effective by early July 2006, subject to negotiations and regulatory approvals.
  • 4The company will amend its existing $1.15 billion Multi-Borrower Credit Agreement, with specific Ameren Illinois Utilities transitioning to the new Illinois Facility.
  • 5The Illinois Facility will have distinct security arrangements and covenants compared to the amended Multi-Borrower Credit Agreement.
  • 6Ameren's total consolidated debt to total capitalization financial covenant of 65% will remain in the amended Multi-Borrower Credit Agreement, but will apply differently to subsidiaries within the Illinois Facility.
  • 7The proposed changes are designed to provide continued access to short-term funding for Ameren Illinois Utilities through intercompany arrangements, even during the transition period.

Frequently Asked Questions

Ameren currently has two committed bank credit facilities totaling $1.5 billion. These are being revised through amendments to an existing $1.15 billion agreement and the establishment of a new $500 million facility.

The Illinois Facility is a new, separate multi-year senior secured credit facility designed for Ameren's Illinois operations. Its proceeds will be used for working capital and other general corporate purposes by specific Ameren subsidiaries operating in Illinois, with potential limitations for AmerenEnergy Resources Generating Company (AERG) related to project financing.

Ameren expects the proposed amendments to the existing credit agreement and the new Illinois Facility to be effective by early July 2006. However, this is subject to final negotiations, execution of definitive agreements, and receipt of necessary regulatory approvals.

The Ameren Illinois Utilities will transition from the amended Multi-Borrower Credit Agreement to the new Illinois Facility. Once they satisfy the conditions for the Illinois Facility, they will cease to be parties to the amended Multi-Borrower Credit Agreement and will become borrowers under the new facility, subject to its specific covenants and security terms. During this transition, they will continue to have access to short-term funding via Ameren's utility money pool and other intercompany borrowing arrangements.