8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMEREN CORP 8-K Report, Material Agreement (Dec 8, 2016)

Filed December 8, 2016For Securities:AEE

Summary

Ameren Corporation (AEE) has filed an 8-K report on December 8, 2016, detailing amendments to its credit agreements. The key event is the entry into Amended and Restated Credit Agreements for both its Missouri and Illinois operations on December 7, 2016. These agreements, entered into with JPMorgan Chase Bank, N.A., as agent, and various lenders, primarily extend the maturity dates of existing revolving credit facilities. For investors, the most significant aspect is the extension of the maturity dates for the $1 billion Ameren Missouri and $1.1 billion Ameren Illinois credit facilities from December 11, 2019, to December 7, 2021. The agreements also include options for two additional one-year extensions. While borrowing limits and letter of credit capacities remain unchanged, certain covenants within the Illinois credit agreement have been modified, notably removing restrictions on investments in project finance subsidiaries and special purpose companies, and eliminating a lien limitation. This filing provides an update on Ameren's debt structure and liquidity management.

Key Highlights

  • 1Ameren Corporation and its subsidiaries, Ameren Missouri and Ameren Illinois, entered into Amended and Restated Credit Agreements on December 7, 2016.
  • 2The maturity dates of the $1 billion (Ameren Missouri) and $1.1 billion (Ameren Illinois) revolving credit facilities have been extended from December 11, 2019, to December 7, 2021.
  • 3The agreements allow for potential further extensions of the maturity date for up to two additional one-year periods.
  • 4Maximum borrowing limits and aggregate letter of credit capacities under both credit agreements remain unchanged.
  • 5Specific covenants within the Amended Illinois Credit Agreement were modified, including the removal of restrictions on investments in project finance subsidiaries and special purpose companies.
  • 6A limitation on the aggregate outstanding dollar amount of liens secured under Ameren Illinois first mortgage bonds was also removed.
  • 7The requirement for Ameren to maintain a minimum ratio of consolidated funds from operations plus interest expense to consolidated interest expense was removed from the Illinois agreement.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Ameren Corporation's entry into Amended and Restated Credit Agreements for its Missouri and Illinois operations, which extends the maturity dates of its revolving credit facilities and modifies certain covenants.

The filing extends the maturity dates of the company's significant revolving credit facilities by approximately two years, from late 2019 to late 2021, providing greater financial flexibility and stability.

The maximum borrowing limits and the aggregate amounts for letters of credit under both the Missouri and Illinois credit agreements remain unchanged. Interest rates will continue to be based on alternate base rates or Eurodollar rates plus applicable margins, determined by credit ratings, and a commitment fee is payable quarterly.

The Amended Illinois Credit Agreement removed restrictions on the Illinois Borrowers' investments in project finance subsidiaries and special purpose companies, eliminated a limitation on liens secured by Ameren Illinois first mortgage bonds, and removed a requirement for Ameren to maintain a minimum ratio of consolidated funds from operations plus interest expense to consolidated interest expense.