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Ameren Illinois Announces Pricing of First Mortgage Bonds due 2055

1. Priced $350M in first mortgage bonds due 2055 at near par. It signals a refinancing move. 2. Net proceeds will repay $300M of 2025 senior secured notes and part of short-term debt. It streamlines liabilities. 3. Top banks act as joint book-running managers for the offering. Closing is expected on March 3, 2025.

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FAQ

Why Neutral?

This debt refinancing reduces refinancing risk and improves liquidity, but such moves are routine. Similar utility companies have issued bonds for debt restructuring with minimal immediate market reaction.

How important is it?

While the refinancing is significant for debt management and liquidity, it is a standard event that usually exerts moderate influence on stock prices.

Why Long Term?

The move strengthens the balance sheet over time, providing a more stable long-term outlook. Utility companies typically see gradual benefits from improved debt profiles.

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BACMSTFCBK
, /PRNewswire/ -- Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), announced today the pricing of a public offering of $350 million aggregate principal amount of 5.625% first mortgage bonds due 2055 at 99.986% of their principal amount. The transaction is expected to close on March 3, 2025, subject to the satisfaction of customary closing conditions. Ameren Illinois intends to use the net proceeds of the offering to repay $300 million principal amount of its 3.25% senior secured notes due 2025 and to refinance a portion of its short-term debt.  BNY Mellon Capital Markets, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and Truist Securities, Inc. are acting as joint book-running managers for the offering. The offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. Copies of the prospectus and related prospectus supplement for the offering, when available, may be obtained via the Securities and Exchange Commission's website at www.sec.gov or by contacting BNY Mellon Capital Markets, LLC, 240 Greenwich Street, 3rd Floor, New York, New York 10286, Attn: Debt Capital Markets, phone: 1-800-269-6864. This press release does not constitute an offer to sell or a solicitation of an offer to buy the first mortgage bonds and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful. About Ameren Illinois Ameren Illinois delivers energy to 1.2 million electric and more than 800,000 natural gas customers throughout central and southern Illinois. Our service territory covers more than 1,200 communities and 43,700 square miles and our mission is to power the quality of life. For more information, visit Ameren.com/Illinois or follow us on X at @AmerenIllinois or Facebook.com/AmerenIllinois. SOURCE Ameren Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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