Ameren Missouri on Sept. 23 priced a $330 million offering of 3.25% first mortgage bonds due Oct. 1, 2049, at 99.657% of its principal amount.
The transaction is expected to close Oct. 1, subject to the satisfaction of customary closing conditions.
Interest on the notes is payable every April 1 and Oct. 1, starting April 1, 2020. The bonds have a spread to benchmark Treasury of 112 basis points and were expected to be rated A2 by Moody's and A by S&P Global Ratings.
The Ameren Corp. subsidiary plans to use net proceeds to repay at maturity $244.3 million of its 5.10% senior secured notes due Oct. 1 and to repay a portion of its short-term debt. On Sept. 20, the utility's short-term debt consisted of commercial paper, which was outstanding in the amount of approximately $146 million.
J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and KeyBanc Capital Markets Inc. are serving as joint book-running managers. C.L. King & Associates Inc., Drexel Hamilton LLC and Samuel A. Ramirez & Co. Inc. are acting as co-managers.
Ameren Missouri is legally known as Union Electric Co.
