8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMEREN CORP 8-K Report, Material Agreement (Mar 14, 2007)

Filed March 14, 2007For Securities:AEE

Summary

This 8-K filing from Ameren Corporation (AEE) on March 14, 2007, details the finalization of a material definitive agreement concerning a new, multi-year committed bank credit facility. Following regulatory approvals, Ameren's Illinois subsidiaries, AmerenCIPS, AmerenCILCO, and AmerenIP, are now authorized to draw funds and obtain letters of credit under a $500 million Credit Agreement dated February 9, 2007. Specifically, AmerenIP has secured a $200 million borrowing capacity under this new agreement, in addition to its existing credit line. AmerenCIPS and AmerenCILCO retain their capacities under a prior agreement but have the option to shift borrowing capacity to the new facility. The filing also specifies the issuance of mortgage bonds by each subsidiary to secure their obligations under the new credit agreement, with terms governing their redemption and discharge tied to the underlying credit agreement terms.

Key Highlights

  • 1Ameren's Illinois subsidiaries (AmerenCIPS, AmerenCILCO, AmerenIP) are authorized to borrow under a new $500 million credit facility effective March 9, 2007.
  • 2AmerenIP has a dedicated borrowing capacity of $200 million under the new 2007 Credit Agreement.
  • 3AmerenCIPS and AmerenCILCO can optionally shift borrowing capacity from an older agreement to the new 2007 Credit Agreement.
  • 4Each subsidiary has issued mortgage bonds to secure their obligations under the 2007 Credit Agreement.
  • 5The terms of the issued mortgage bonds are directly linked to the underlying credit agreement obligations, including default and redemption provisions.
  • 6This filing confirms the successful implementation of a previously announced credit facility, providing enhanced financial flexibility for Ameren's utility operations.

Frequently Asked Questions

This filing announces that Ameren's Illinois subsidiaries have received regulatory approval and are now authorized to make borrowings and obtain letters of credit under a new $500 million multi-year bank credit facility established on February 9, 2007.

AmerenIP has an authorization to borrow up to $200 million. AmerenCIPS and AmerenCILCO will continue with their existing capacities under a 2006 agreement, with the option to shift some or all of that capacity to the new 2007 Credit Agreement.

Each subsidiary (AmerenCIPS, AmerenCILCO, and AmerenIP) has issued or is authorized to issue First Mortgage Bonds (or Mortgage Bonds for AmerenIP) to secure their respective obligations under the 2007 Credit Agreement. These bonds are secured by liens on their properties as outlined in their respective mortgage indentures.

If a subsidiary permanently reduces its borrowing capacity under the 2007 Credit Agreement, its obligation related to the corresponding Credit Agreement Bonds will be discharged to that extent. Similarly, interest and fee payments on the Credit Agreement Bonds are considered satisfied to the extent corresponding payments are made on the credit agreement itself.