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ALLIANT ENERGY
Alliant Energy
Worldwide Headquarters
222 W. Washington Ave.
P.O. Box 192
Madison, WI 53701-0192
www.alliant-energy.com
News Release
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FOR IMMEDIATE RELEASE Media Contact: David Giroux at (608) 252-3924
Finance Contact: Bob Rusch at (608) 252-3470
ALLIANT ENERGY ANNOUNCES PROPOSED $350 MILLION DEBT OFFERING BY ALLIANT ENERGY
RESOURCES
MADISON, Wis.--Jan. 26, 2000--Alliant Energy Corporation (NYSE:LNT)
today announced that its wholly-owned subsidiary, Alliant Energy Resources,
Inc., intends, subject to market and other conditions, to offer approximately
$350 million aggregate principal amount of Exchangeable Senior Notes due 2030 in
a private placement in accordance with Rule 144A under the Securities Act of
1933. The Exchangeable Senior Notes are exchangeable for cash based upon the
value of McLeodUSA Incorporated Class A Common Stock. The interest rate and
other terms of the Exchangeable Senior Notes have yet to be finalized. Alliant
Energy Corporation has agreed to unconditionally guarantee the payment of
principal and interest on the Exchangeable Senior Notes.
Alliant Energy Resources expects to use the net proceeds from the sale
of Exchangeable Senior Notes (1) to repay commercial paper Alliant Energy
Resources issued initially to capitalize its wholly-owned exempt
telecommunications company and indirectly, through an internal transfer of
assets, to fund Alliant Energy Resources recent investment in Brazil and (2) for
general corporate purposes, including, without limitation, to fund potential
future investment opportunities in energy marketing, co-generation,
environmental services and other areas. Alliant Energy Resources may initially
invest net proceeds that it does not immediately require in short-term
marketable securities.
The offering will be a private placement under Rule 144A of the
Securities Act of 1933 and will be made only to qualified institutional buyers
and to a limited number of institutional accredited investors. The Exchangeable
Senior Notes to be offered are not being registered under the Securities Act of
1933 or applicable state securities laws, and may not be offered or sold in the
United States absent registration under the Securities Act of 1933 and
applicable state securities laws or available exemption from the registration
requirements. This news release does not constitute an offer to sell or the
solicitation of an offer to buy the Exchangeable Senior Notes. Any offers of the
Exchangeable Senior Notes will be made only by means of a confidential offering
memorandum.
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Alliant Energy
January 26, 2000
Page 2 of 2
This press release includes forward-looking statements. These
forward-looking statements can be identified as such because the statement
includes words such as "expects" or "estimates" or other words of similar
import. Similarly, statements that describe future plans or strategies are also
forward-looking statements. Such statements are subject to certain risks and
uncertainties which could cause actual results to differ materially from those
currently anticipated. Factors which could affect actual results include, among
others, weather conditions; regulatory or governmental actions, including
utility industry restructuring; general economic and political conditions in
Alliant Energy's relevant domestic and international service territories;
material changes in the value of Alliant Energy's investment in McLeodUSA; the
ability of Alliant Energy to successfully introduce new products and services;
technological developments; and inflation rates. These factors should be
considered in evaluating the forward-looking statements and undue reliance
should not be placed on such statements. The forward-looking statements included
herein are made as of the date hereof and Alliant Energy undertakes no
obligation to update publicly such statements to reflect subsequent events or
circumstances.