AmerenUE seeks to sell $350 million of debt

Electric and natural-gas utility AmerenUE is seeking permission from the Missouri Public Service Commission to sell up to $350 million in long-term debt.

Proceeds would be used to refinance short-term borrowings under credit agreements. AmerenUE incurs short-term debt to fund its cash needs in instances where expenditures exceed cash receipts, the utility said on Friday in a PSC filing.

AmerenUE  had little in the way of short-term borrowings at the end of the third quarter. But the utility frequently incurs short-term debt in the fourth quarter when it conducts much of its plant maintenance and revenues are at a low point.

St. Louis-based AmerenUE says the regulatory filing is meant to provide flexibility to access the capital markets if and when terms and timing are favorable.

Just a few months ago, AmerenUE Chief Executive Thomas Voss told the PSC that the utility was unable to sell commercial paper, a type of short-term debt used to finance daily expenditures. Even selling longer-term notes and bonds would be more challenging in the midst of a global credit crunch.

No word yet whether AmerenUE has seen the credit markets relax a little.