Summary
Ameren Corporation (AEE) filed an 8-K on May 15, 2009, to report on the issuance and sale of $425 million in 8.875% senior notes due 2014. The company received net proceeds of approximately $420 million from this offering. These funds are earmarked to repay a portion of Ameren's short-term debt, specifically borrowings under a $300 million term loan agreement. Furthermore, a significant portion of the proceeds will be used as a capital contribution to Ameren's wholly-owned subsidiary, CILCORP Inc. This infusion of capital will enable CILCORP Inc. to repay its outstanding $123.76 million in 8.700% senior notes, which are due to mature on October 15, 2009. This strategic move aims to manage upcoming debt maturities and strengthen the subsidiary's financial position.
Key Highlights
- 1Ameren Corp. issued $425 million of 8.875% senior notes due 2014.
- 2Net proceeds from the note issuance were approximately $420 million.
- 3Proceeds will be used to repay a portion of Ameren's short-term debt, including borrowings under a $300 million term loan.
- 4Funds will also be provided to CILCORP Inc. (wholly-owned subsidiary) to repay its 8.700% senior notes due October 15, 2009.
- 5CILCORP's maturing notes have an aggregate principal amount of $123,755,000.
- 6The offering was made under a previously effective Registration Statement on Form S-3.
- 7The filing includes exhibits related to the underwriting agreement and indentures for the new notes.