8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMEREN CORP 8-K Report, Material Agreement (Feb 13, 2007)

Filed February 13, 2007For Securities:AEE

Summary

Ameren Corporation, through its subsidiaries, has entered into a new $500 million credit facility, the 2007 Credit Agreement, effective February 9, 2007, which will mature on January 14, 2010. This new facility supplements an existing $500 million credit agreement and provides additional borrowing capacity for its Ameren Illinois Utilities (CIPS, CILCO, IP), CILCORP, and AmerenEnergy Resources Generating Company (AERG). While AERG and CILCORP can immediately utilize their allocated borrowing limits, the Ameren Illinois Utilities require regulatory approval and the issuance of mortgage bonds as security before they can draw funds. The proceeds are intended for working capital and general corporate purposes, with potential limitations for AERG's borrowings. The new credit agreement introduces specific borrowing limits for each subsidiary under this facility, ranging from $100 million for AERG to $200 million for AmerenIP. It also details how CILCO and CIPS can shift borrowing capacity from the older agreement to the new one. The agreement includes standard covenants such as limitations on incurring liens, asset disposals, and mergers, as well as specific provisions related to collateral, inter-affiliate transactions, and dividend restrictions. A key financial covenant requires consolidated indebtedness to not exceed 65% of consolidated total capitalization.

Key Highlights

  • 1Ameren subsidiaries established a new $500 million credit facility (2007 Credit Agreement) maturing January 14, 2010, supplementing an existing $500 million facility.
  • 2Specific borrowing allocations are provided for CILCORP ($125M), AERG ($100M), and AmerenIP ($200M) under the new agreement.
  • 3AmerenCILCO and AmerenCIPS can transfer borrowing capacity from the prior agreement to the new one, with specific aggregate limits.
  • 4AmerenCILCO, AmerenCIPS, and AmerenIP require regulatory approval and mortgage bond issuance to borrow under the new agreement.
  • 5Proceeds from the credit facility are designated for working capital and general corporate purposes.
  • 6The agreement includes standard covenants and a key financial covenant limiting consolidated indebtedness to 65% of total capitalization.
  • 7Cross-default provisions exist between the 2007 Credit Agreement and the Prior Illinois Credit Agreement.

Frequently Asked Questions

The primary purpose of the 2007 Credit Agreement is to provide Ameren's subsidiaries with additional borrowing capacity for working capital and general corporate purposes, supplementing their existing credit facilities.

No. While AmerenEnergy Resources Generating Company (AERG) and CILCORP Inc. (CILCORP) can borrow immediately, the Ameren Illinois Utilities (CIPS, CILCO, and IP) require necessary regulatory approvals and the issuance of mortgage bonds as security before they can access funds under the 2007 Credit Agreement.

A significant financial covenant requires each Borrower to maintain consolidated indebtedness of not more than 65% of consolidated total capitalization. The agreement also includes provisions related to limitations on dividends and distributions under certain default or rating-change scenarios.

The 2007 Credit Agreement is in addition to the existing $500 million credit facility dated July 14, 2006. While the prior agreement remains in effect, AmerenCILCO and AmerenCIPS have the option to reduce their borrowing capacity under the prior agreement and shift it to the new agreement under specific limits. The agreements also contain cross-default provisions.