8-KExhibits & Filings

AMEREN CORP 8-K Report, Exhibit Filing (Nov 20, 2007)

Filed November 20, 2007For Securities:AEE

Summary

This 8-K filing reports a significant financial transaction by Ameren Corporation's wholly-owned subsidiary, Illinois Power Company (d/b/a AmerenIP). On November 20, 2007, AmerenIP issued and sold $250 million of 6.125% Senior Secured Notes due 2017 in a private placement. The primary purpose of this issuance is to repay existing short-term debt, indicating a move towards longer-term, potentially lower-cost financing and improved balance sheet management. The notes are secured by a series of the company's mortgage bonds and are governed by specific indentures and mortgages. This filing is important for investors as it provides details on new debt obligations, interest rates, maturity dates, and collateral. The inclusion of registration rights also suggests a future opportunity for these privately placed notes to be more readily tradable.

Key Highlights

  • 1Illinois Power Company (AmerenIP) issued $250 million in 6.125% Senior Secured Notes due 2017.
  • 2The notes were issued through a private placement transaction.
  • 3The proceeds from the note issuance will be used to repay existing short-term debt.
  • 4The notes are secured by a related series of AmerenIP's mortgage bonds under a General Mortgage Indenture.
  • 5The notes mature on November 15, 2017, with semi-annual interest payments.
  • 6The company has agreed to file registration statements, providing for potential exchange offers or shelf registrations.
  • 7Failure to comply with registration rights agreements may result in additional interest payments up to 0.50% per year.

Frequently Asked Questions

The primary purpose of the note issuance is to repay existing short-term debt. This suggests a strategy to refinance or extend the maturity of short-term obligations with longer-term debt.

The notes were issued in a private placement. However, AmerenIP has agreed to file registration rights statements, which may lead to an exchange offer for registered notes or allow for future public offerings (shelf registration), potentially making them more accessible to public investors.

The notes carry a coupon rate of 6.125% and are due on November 15, 2017. Interest payments are scheduled semi-annually on May 15 and November 15 each year.

The notes are secured by a related series of AmerenIP's mortgage bonds, which are pledged as collateral under the company's General Mortgage Indenture and Deed of Trust.