- Ameren Corporation (AEE, Financial) has announced a common stock offering of 5,550,416 shares at $94.00 per share.
- Forward sale agreements with major banks allow Ameren to delay settlement until January 2027.
- Proceeds will be used for general corporate purposes, including short-term debt repayment.
Ameren Corporation (AEE) has initiated an underwritten public offering of 5,550,416 shares of its common stock, pricing each share at $94.00. This offering is structured with forward sale agreements involving financial powerhouses Goldman Sachs, JPMorgan, Barclays, and Wells Fargo. The settlement of these forward sales is flexible, with a completion deadline set for January 15, 2027.
The structure gives Ameren significant flexibility in timing their share issuance, which is expected to generate gross proceeds of approximately $522 million. Additionally, the underwriters hold a 30-day option to purchase an extra 832,562 shares, potentially increasing the proceeds by about $78 million.
The net proceeds from this offering will serve Ameren's general corporate purposes, including the repayment of short-term debt. This strategy is ostensibly part of Ameren's capital management initiative, aimed at reinforcing its financial footing as it continues to invest in its regulated utility businesses across Illinois and Missouri.
The company has the option to settle these agreements through physical delivery, cash, or net shares, offering financial flexibility while minimizing immediate stock dilution. The offering is expected to close around May 14, 2025.
