8-KMaterial AgreementsFinancial Events

AMEREN CORP 8-K Report, Material Agreement (Jun 30, 2009)

Filed June 30, 2009For Securities:AEE

Summary

On June 30, 2009, Ameren Corporation (AEE) and its subsidiaries entered into new, substantial credit facilities totaling $2.1 billion, which will step down to $1.8795 billion in July 2010. These facilities, which include both a multi-year credit agreement and a supplemental credit agreement, were oversubscribed and are supported by a diverse group of 24 lenders, mitigating concentration risk. The primary purpose of these agreements is to ensure robust liquidity for general corporate purposes, including working capital and commercial paper support, reflecting a proactive approach to financial management during potentially uncertain economic times. Key to note is the restructuring of credit agreements to include Ameren Corporation as a borrower under a new $800 million senior secured "2009 Illinois Credit Agreement" for its Illinois utilities (AmerenCIPS, AmerenCILCO, AmerenIP), replacing prior facilities. This new agreement matures in June 2011 and provides significant borrowing capacity to these regulated entities, with secured obligations for the utilities and unsecured obligations for Ameren itself. The company has also extended the maturity of its prior multi-borrower credit agreement, demonstrating a commitment to maintaining strong financial flexibility.

Key Highlights

  • 1Ameren secured new multi-year credit facilities totaling $2.1 billion, stepping down to $1.8795 billion by July 2010, ensuring significant liquidity.
  • 2These credit facilities were oversubscribed and supported by a diverse group of 24 lenders, reducing lender-specific risk.
  • 3A new $800 million senior secured "2009 Illinois Credit Agreement" was established for Ameren's Illinois utilities, replacing prior facilities and maturing in June 2011.
  • 4Ameren Corporation is now a borrower under the Illinois credit facility, along with its operating utilities (AmerenCIPS, AmerenCILCO, AmerenIP).
  • 5The new credit agreements include financial covenants, such as a consolidated indebtedness to total capitalization ratio not exceeding 65%, and non-financial covenants similar to prior agreements.
  • 6The proceeds from borrowings under these new credit facilities will be used for general corporate purposes, including working capital and commercial paper liquidity support.
  • 7No early termination penalties were incurred in the termination of prior credit agreements related to the new facility implementations.

Frequently Asked Questions

Ameren has secured new credit facilities totaling $2.1 billion. This amount will reduce to $1.8795 billion by July 14, 2010, and the primary multi-year credit agreement extends through July 14, 2011.

The proceeds from these credit facilities are intended for general corporate purposes, including working capital, liquidity support for commercial paper, and funding for Ameren's money pool arrangements.

The credit facilities are provided by a large and diverse group of 24 international, national, and regional lenders. No single lender holds more than $146 million of the credit, indicating a diversified lending base.

The '2009 Multi-Year Credit Agreements' (totaling $1.3 billion initially) involve Ameren Corporation, AmerenUE, and Ameren Energy Generating Company (Genco) for general corporate purposes, with unsecured obligations. The '2009 Illinois Credit Agreement' (totaling $800 million) is specifically for the Ameren Illinois Utilities (AmerenCIPS, AmerenCILCO, AmerenIP) for their operational needs, with secured obligations for the utilities and unsecured for Ameren. Ameren is a borrower under both.