8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMEREN CORP 8-K Report, Material Agreement (Dec 6, 2022)

Filed December 6, 2022For Securities:AEE

Summary

Ameren Corporation (AEE) and its subsidiaries, Union Electric Company (Ameren Missouri) and Ameren Illinois Company, have entered into amended and restated credit agreements on December 6, 2022. These agreements serve to enhance the liquidity and financial flexibility of the company's operating utilities. The total facility size for Ameren Missouri has been increased to $1.4 billion, and for Ameren Illinois to $1.2 billion. Both agreements extend the maturity date to December 6, 2027, with options for further one-year extensions. This refinancing strengthens the companies' ability to fund operations and capital expenditures, providing a stable financial foundation for future growth and investments. The key changes include increased borrowing limits for both Ameren and its respective subsidiaries under these credit facilities, along with extended maturity dates, offering greater financial runway. The terms also outline interest rate calculations based on market rates and credit ratings, and maintain customary covenants, including a consolidated debt ratio requirement of 65% or less of total capitalization. This proactive measure by Ameren is aimed at ensuring continued access to capital markets and supporting its long-term strategic objectives.

Key Highlights

  • 1Ameren and its subsidiaries (Ameren Missouri and Ameren Illinois) entered into amended and restated credit agreements on December 6, 2022.
  • 2The total credit facility for Ameren Missouri was increased from $1.2 billion to $1.4 billion.
  • 3The total credit facility for Ameren Illinois was increased from $1.1 billion to $1.2 billion.
  • 4The maturity date for both credit agreements has been extended from December 2025 to December 2027, with provisions for additional one-year extensions.
  • 5Borrowing limits for Ameren and its subsidiaries under these agreements were increased.
  • 6The agreements include provisions for interest rates based on Alternate Base Rate, Adjusted Term SOFR, or Adjusted Daily Simple SOFR, plus an Applicable Margin tied to credit ratings.
  • 7Customary covenants are included, such as restrictions on asset pledges and sales, and a requirement to maintain a consolidated debt ratio of 65% or less of total capitalization.

Frequently Asked Questions

The primary purpose of these amended and restated credit agreements is to enhance Ameren's and its subsidiaries' (Ameren Missouri and Ameren Illinois) liquidity and financial flexibility. This involves increasing the total available borrowing capacity and extending the maturity dates, which supports ongoing operational needs and future capital investments.

The total facility size for Ameren Missouri has been increased from $1.2 billion to $1.4 billion. For Ameren Illinois, the total facility size has been increased from $1.1 billion to $1.2 billion. Additionally, the maximum borrowing limits for Ameren and its respective subsidiaries under these facilities have also been raised.

The maturity date for both the Amended Missouri Credit Agreement and the Amended Illinois Credit Agreement has been extended to December 6, 2027. Furthermore, there are provisions allowing for the maturity date to be extended for two additional one-year periods, subject to the borrowers' request and lenders' agreement.

The Amended Credit Agreements include customary covenants, such as restrictions on pledging assets and certain asset sales. A significant covenant requires each borrower to maintain a consolidated debt ratio of 65% or less of its total capitalization, ensuring a balanced capital structure.