01—Abstract
Summary
Summary of the 8-K filed June 6, 2024. Cited figures are marked; the original filing is the authoritative source.
Alliant Energy Finance, LLC ("AEF"), a wholly-owned subsidiary of Alliant Energy Corporation, issued $375 milliona aggregate principal amount of 5.400% Senior Notes due June 6, 2027 in a private offering under Rule 144A and Regulation S.
The notes are senior unsecured obligations of AEF and are fully and unconditionally guaranteed by Alliant Energy on a senior unsecured basis. Interest is payable semi-annually on June 6 and December 6, beginning December 6, 2024. The notes were issued under an indenture dated June 6, 2024 with The Bank of New York Mellon Trust Company, N.A. as trustee, which includes covenants restricting liens and mergers or asset conveyances, along with customary events of default.
AEF may redeem some or all of the notes before May 6, 2027 at the greater of par or a make-whole amount calculated at the treasury rate plus 15 basis points, plus accrued interest. The filing states that net proceeds are intended to reduce Alliant Energy's outstanding commercial paper and fund general corporate purposes. The pricing was announced in a June 3, 2024 press release, which is filed as Exhibit 99.1.
For investors, the transaction is a debt financing that adds $375 millionb of senior unsecured notes guaranteed by the parent, with proceeds directed toward refinancing short-term commercial paper and general corporate needs. The filing does not describe any change to operations, earnings, or guidance.
02—Key points
Key Highlights
- AEF issued $375 million of 5.400% Senior Notes due June 6, 2027 in a private offering under Rule 144A and Regulation S.
- The notes are senior unsecured obligations of AEF, fully and unconditionally guaranteed by Alliant Energy Corporation on a senior unsecured basis.
- Interest is payable semi-annually on June 6 and December 6, starting December 6, 2024.
- AEF may redeem the notes before May 6, 2027 at the greater of par or a make-whole price based on the treasury rate plus 15 basis points, plus accrued interest.
- The indenture, dated June 6, 2024, names The Bank of New York Mellon Trust Company, N.A. as trustee and includes lien and merger covenants and customary events of default.
- Net proceeds are intended to reduce Alliant Energy's outstanding commercial paper and for general corporate purposes.
- The offering was priced and announced in a June 3, 2024 press release, filed as Exhibit 99.1.
03—Questions
Frequently Asked Questions
Who issued the notes and who guarantees them?
Alliant Energy Finance, LLC (AEF), a wholly-owned subsidiary of Alliant Energy Corporation, issued the notes. Alliant Energy Corporation fully and unconditionally guarantees them on a senior unsecured basis.
What are the key terms of the notes?
The notes have a principal amount of $375 million, a 5.400% fixed interest rate, and a maturity date of June 6, 2027. Interest is paid semi-annually on June 6 and December 6, beginning December 6, 2024.
Can the notes be redeemed early?
Yes. Before May 6, 2027, AEF may redeem some or all of the notes at the greater of 100% of principal or a present-value amount based on the treasury rate plus 15 basis points, plus unpaid interest to the redemption date.
What will the proceeds be used for?
The filing states that the net proceeds are intended to reduce Alliant Energy's outstanding commercial paper and for general corporate purposes.
What restrictions does the indenture place on the company?
The indenture restricts AEF's and Alliant Energy's ability, and that of certain other Alliant Energy subsidiaries, to create liens. It also limits consolidation, merger, or the conveyance of substantially all assets, and includes customary events of default such as nonpayment, covenant breach, and bankruptcy or insolvency.
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