8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Sep 19, 2008)

Filed September 19, 2008For Securities:AEE

Summary

Ameren Corporation (AEE) is filing an 8-K to disclose its exposure and potential impact stemming from the September 15, 2008, bankruptcy filing of Lehman Brothers Holdings Inc. The company states that its direct exposure from energy commodity transactions with Lehman subsidiaries is less than $1 million, a de minimis amount. Furthermore, Ameren and its subsidiaries have committed credit facilities totaling $2.15 billion with a consortium of banks, which include Lehman Brothers Bank, FSB and Lehman Brothers Commercial Bank. As of the bankruptcy filing, Lehman's subsidiaries had commitments totaling $171 million within these facilities. One of these commitments ($50 million) has already been assigned to Commerzbank AG. Ameren believes that even if Lehman Brothers Bank, FSB does not fund its remaining commitments, it will not materially impact the company's liquidity, which stood at approximately $1.197 billion as of September 18, 2008, excluding the Lehman-related credit facilities.

Key Highlights

  • 1Ameren's direct exposure from energy commodity transactions with Lehman subsidiaries is estimated to be less than $1 million, before taxes.
  • 2The Lehman bankruptcy filing allows Ameren subsidiaries to terminate certain energy commodity transactions.
  • 3Ameren and its subsidiaries have $2.15 billion in committed credit facilities with a banking consortium that includes Lehman Brothers Bank, FSB and Lehman Brothers Commercial Bank.
  • 4Lehman's subsidiaries had $171 million in commitments within Ameren's credit facilities as of the bankruptcy filing.
  • 5A $50 million commitment from Lehman Brothers Commercial Bank has been assigned to Commerzbank AG.
  • 6Ameren had approximately $1.197 billion in available liquidity as of September 18, 2008, excluding Lehman's credit facility commitments.
  • 7The company does not anticipate a material impact on its liquidity if Lehman Brothers Bank, FSB fails to fund its commitments.

Frequently Asked Questions

Ameren's direct financial exposure related to energy commodity transactions with Lehman subsidiaries is less than $1 million before taxes. The company believes this exposure is not material.

Ameren has $2.15 billion in committed credit facilities with a consortium of banks that includes Lehman subsidiaries. As of the bankruptcy, Lehman's commitments totaled $171 million. While one $50 million commitment has been reassigned, Ameren believes the potential reduction in available credit due to Lehman's non-funding will not materially impact its overall liquidity.

As of September 18, 2008, Ameren had approximately $1.197 billion in available liquidity, not including the credit facility commitments from Lehman Brothers Bank, FSB.

Yes, the Lehman bankruptcy filing gives Ameren subsidiaries the right to terminate energy commodity transactions with Lehman Brothers Commodity Services Inc. and Eagle Energy Partners I, LP, which are subsidiaries of Lehman.