03.13.2009 5:09 pm
AmerenUE sells $350 million of debt
St. Louis Post-Dispatch
AmerenUE sold$350 million of 30-year notes to help repay short-term borrowings under an existing credit agreement, according to the company and Bloomberg LP. The St. Louis-based utility incurs short-term debt to fund its cash needs in instances where expenditures exceed cash receipts.
The notes pay 8.45 percent. To illustrate how the debt markets and Ameren’s risk profile have changed over the past few years, consider that AmerenUE in July 2005 announced the offering of senior secured notes due 2037 that carried a 5.3 percent rate.
Since then, AmerenUE’s credit rating has been cut three levels by Standard & Poor’s and companies everywhere are being required to pay higher interest rates to raise money.
