8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMEREN CORP 8-K Report, Material Agreement (Sep 13, 2010)

Filed September 13, 2010For Securities:AEE

Summary

Ameren Corporation (AEE) and its subsidiaries have entered into new, comprehensive multi-year credit facility agreements totaling $2.1 billion, effective September 10, 2010. These facilities are designed to provide substantial liquidity and replace existing credit lines. The new agreements, with a maturity of September 10, 2013, are structured to offer flexibility in borrowing and are supported by a diverse group of 25 international, national, and regional lenders, with no single lender holding a dominant position. Key for investors is the refinancing of existing debt, which enhances the company's financial flexibility and liquidity position. The structure of these credit facilities, including the ability to extend maturity dates for certain subsidiaries and the potential to increase the total facility size, indicates proactive financial management. The unsecured nature of the new credit facilities and the terms of the covenants, including leverage ratios and interest coverage requirements, provide insight into Ameren's ongoing financial health and commitment to maintaining a strong balance sheet.

Key Highlights

  • 1Secured new, multi-year credit facilities totaling $2.1 billion, effective September 10, 2010, with a maturity date of September 10, 2013.
  • 2These new facilities replace and terminate the company's previous credit agreements dated June 30, 2009.
  • 3The credit facilities are comprised of three main agreements: an $800 million facility for Ameren and AmerenUE (Missouri operations), a $500 million facility for Ameren and Ameren Energy Generating Company (Genco), and an $800 million facility for Ameren and the Ameren Illinois Utilities (CIPS, CILCO, IP).
  • 4The credit facilities are unsecured, providing flexibility for the company.
  • 5The agreements include conditions for borrowing and non-financial covenants similar to previous agreements, with specific provisions permitting the upcoming merger of CILCO and IP into CIPS.
  • 6Financial covenants require maintaining consolidated indebtedness below 65% of total capitalization and, for Genco and Ameren Illinois, a specific interest coverage ratio.
  • 7Proceeds from borrowings will be used for general corporate purposes, including working capital, liquidity support, and repayment of existing debt.

Frequently Asked Questions

Ameren Corporation and its subsidiaries have secured new multi-year credit facilities totaling $2.1 billion.

The new credit facilities mature on September 10, 2013. Certain subsidiary borrowing sublimits may have earlier maturity dates subject to extension.

The proceeds from borrowings under these facilities will be used for general corporate purposes, including working capital, commercial paper liquidity support, other funding needs, and to repay amounts owed under the previous credit agreements.

The obligations of all borrowers under the 2010 Credit Agreements are unsecured.

The 2010 Illinois Credit Agreement expressly permits the consummation of the merger between CILCO and IP into CIPS, provided certain conditions such as no existing defaults and required regulatory approvals are met. Upon completion, the surviving entity, Ameren Illinois Company, will have a borrowing sublimit of $800 million under this agreement.