8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMEREN CORP 8-K Report, Material Agreement (Jul 18, 2006)

Filed July 18, 2006For Securities:AEE

Summary

Ameren Corporation (AEE) has entered into new and amended credit facilities designed to enhance its financial flexibility. On July 14, 2006, the company and certain subsidiaries finalized an Amended and Restated Five-Year Revolving Credit Agreement, increasing borrowing capacity for Ameren, Union Electric Company (UE), and Ameren Energy Generating Company (Genco). This new agreement extends the maturity for Ameren to July 2010, while providing annual renewal options for UE and Genco through July 2007. Crucially, borrowing authority for the Ameren Illinois Utilities has transitioned to a new, separate credit facility. This transition is accompanied by the establishment of a new $500 million multi-year, senior secured "Illinois Facility" for the Ameren Illinois Utilities (AmerenCIPS, AmerenCILCO, AmerenIP), along with Ameren Energy Resources Generating Company (AERG) and CILCORP Inc. This facility, expected to be fully operational upon regulatory approval in Q3 2006, segregates borrowing capacity and introduces secured obligations for AERG and CILCORP. The structure aims to align credit arrangements with the specific operational and regulatory needs of different business segments.

Key Highlights

  • 1Ameren Corporation and certain subsidiaries entered into an Amended and Restated Five-Year Revolving Credit Agreement (2006 Multi-Borrower Credit Agreement) dated July 14, 2006, replacing a prior agreement.
  • 2The new agreement extends Ameren's borrowing facility maturity to July 14, 2010, with UE and Genco having options for annual renewal until July 2007.
  • 3Ameren retains $1.15 billion borrowing availability, UE has $500 million, and Genco has $150 million under the 2006 Multi-Borrower Credit Agreement; Ameren Illinois Utilities have no borrowing authority under this agreement.
  • 4A new $500 million multi-year, senior secured "Illinois Facility" was established for Ameren Illinois Utilities (AmerenCIPS, AmerenCILCO, AmerenIP), AERG, and CILCORP, effective immediately for AERG and CILCORP.
  • 5Borrowing by Ameren Illinois Utilities under the Illinois Facility is contingent on regulatory approvals, expected in Q3 2006, and the issuance of mortgage bonds as security.
  • 6The Illinois Facility includes secured obligations for AERG (generating stations) and CILCORP (pledge of CILCO stock), with terms for other secured debt limitations for each borrower.
  • 7Ameren terminated a separate $350 million credit facility without penalty as a condition for the effectiveness of the new agreements.

Frequently Asked Questions

The primary purpose is to revise and establish new multi-year committed bank credit facilities to provide Ameren Corporation and its subsidiaries with continued financial flexibility for general corporate purposes, including working capital, commercial paper liquidity support, and funding intercompany arrangements.

The new structure separates borrowing power. The 2006 Multi-Borrower Credit Agreement is primarily for Ameren Corporation, Union Electric Company (UE), and Ameren Energy Generating Company (Genco). A new, separate Illinois Facility is established for the Ameren Illinois Utilities (AmerenCIPS, AmerenCILCO, AmerenIP), along with AmerenEnergy Resources Generating Company (AERG) and CILCORP Inc., reflecting distinct operational and regulatory environments.

Borrowing authority under the Illinois Facility is effective immediately for AERG and CILCORP. For the Ameren Illinois Utilities, access to borrow under this facility is subject to receiving necessary regulatory approvals, which are expected in the third quarter of 2006, and the issuance of mortgage bonds as security.

Under the 2006 Multi-Borrower Credit Agreement, Ameren has $1.15 billion in borrowing availability, UE has $500 million, and Genco has $150 million. The new Illinois Facility provides an additional $500 million for AERG, CILCORP, and the Ameren Illinois Utilities (CIPS, CILCO, IP).