Summary
On June 25, 2008, Ameren Corporation (AEE) entered into a $300 million term loan agreement with JPMorgan Chase Bank, N.A., as agent for various lenders. This loan, which matures on June 24, 2009, was fully drawn on June 26, 2008. The proceeds are intended for general corporate purposes, including reducing existing borrowings under Ameren's 2006 revolving credit agreement, thereby freeing up capacity under that facility. Significant terms of the new loan include mandatory prepayments required if Ameren issues equity, certain hybrid securities, or additional debt above specified thresholds. These prepayments are generally without penalty, except for potential funding indemnity costs on Eurodollar loans. The agreement also mandates prepayment if Ameren establishes new credit facilities with total commitments exceeding $1.15 billion, with the prepayment amount equal to the excess commitments. The obligations are unsecured, and no subsidiaries are parties to or guarantors of this specific term loan.
Key Highlights
- 1Ameren secured a $300 million term loan maturing in one year (June 24, 2009).
- 2The full $300 million was drawn on June 26, 2008.
- 3Loan proceeds will be used for general corporate purposes, including reducing existing credit facility debt.
- 4Mandatory prepayments are required upon issuance of equity, certain hybrid securities, additional debt above $25 million, or establishment of new credit facilities exceeding $1.15 billion.
- 5The term loan is unsecured.
- 6Ameren must maintain consolidated indebtedness not exceeding 65% of consolidated total capitalization.
- 7Certain major subsidiaries are excluded from the definition of 'Subsidiary' under the loan agreement for covenant purposes.