ST. LOUIS, Aug. 13, 2012 /PRNewswire/ -- Ameren Illinois Company, a subsidiary of Ameren Corporation (NYSE: AEE), announced today that it is offering $400 million in principal amount of its 2.70% Senior Secured Notes due 2022 (the "New Notes"). The offering is expected to close on August 20, 2012.
Ameren Illinois intends to use the net proceeds from the offering of the New Notes, together with other available cash, to provide the total amount of funds required to complete its previously announced tender offer (the "Tender Offer") to repurchase for cash its outstanding 9.75% Senior Secured Notes due 2018 (the "9.75% Notes") and 6.25% Senior Secured Notes due 2018 (the "6.25% Notes," and together with the 9.75% Notes, the "Tender Offer Notes"), including the payment of interest on the Tender Offer Notes purchased thereunder and all related fees and expenses. The maximum aggregate purchase price (including principal and premium) for the Tender Offer Notes will be $450 million. Ameren Illinois also expects to use the net proceeds from the offering of the New Notes to redeem, at par value, all or a portion of $51.1 million aggregate principal amount of 5.50% debt maturing in 2014.
The joint book-running managers for the offering of the New Notes are Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, RBS Securities Inc. and Scotia Capital ( USA) Inc.
Early Tender ResultsAmeren Illinois also announced today the early tender results of the Tender Offer. As of 5:00 p.m., New York City time, on August 10, 2012 (the "Early Tender Date"), approximately $87 million in aggregate principal amount of the 9.75% Notes and approximately $193 million in aggregate principal amount of the 6.25% Notes had been validly tendered and not validly withdrawn. The amount of each series of the Tender Offer Notes that will be purchased in the Tender Offer will be based on the maximum aggregate purchase price of $450 million and the order of priority for such series of Tender Offer Notes in accordance with the acceptance priority level set forth in the Offer to Purchase, as described below. As more fully described in the Offer to Purchase, because the 9.75% Notes have a higher acceptance priority level than the 6.25% Notes, all 9.75% Notes validly tendered and not validly withdrawn in the Tender Offer will be accepted for purchase up to the maximum aggregate purchase price of $450 million before any validly tendered and not validly withdrawn 6.25% Notes are accepted for purchase, up to the maximum aggregate purchase price of $450 million for all the Tender Offer Notes in the aggregate. Holders who validly tendered (and did not subsequently withdraw) their Tender Offer Notes prior to the Early Tender Date, and whose Tender Offer Notes are accepted for purchase pursuant to the Tender Offer, will receive total consideration equal to $1,384.06 per $1,000 principal amount of 9.75% Notes and $1,218.36 per $1,000 principal amount of 6.25% Notes, in each case which includes an early tender premium of $30.00 per $1,000 principal amount of such Tender Offer Notes, plus any accrued and unpaid interest from the last interest payment date applicable to the relevant series of Tender Offer Notes up to, but not including, the settlement date for such Tender Offer Notes accepted for purchase. Holders of Tender Offer Notes that are validly tendered after the Early Tender Date but at or prior to the Expiration Date (as defined below) will receive $1,354.06 per $1,000 principal amount of 9.75% Notes and $1,188.36 per $1,000 principal amount of 6.25% Notes, plus any accrued and unpaid interest from the last interest payment date applicable to the relevant series of Tender Offer Notes up to, but not including, the settlement date for such Tender Offer Notes accepted for purchase. Withdrawal rights expired at 5:00 p.m., New York City time, on August 10, 2012. Ameren Illinois' obligation to accept for payment and to pay for the 9.75% Notes and the 6.25% Notes in the Tender Offer is subject to the satisfaction or waiver of a number of general conditions described in the Offer to Purchase and to the successful completion of the offering of the New Notes.
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