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Exhibit 99.1
One Ameren Plaza
1901 Chouteau
Avenue
St. Louis, MO 63103
Contact:
Media Analysts Investors
Susan Gallagher Bruce Steinke Investor Services
(314) 554-2175 (314) 554-2574 invest@ameren.com
sgallagher@ameren.com bsteinke@ameren.com
FOR IMMEDIATE RELEASE
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Illinois Power Company Announces Partial Redemption and
Cash Tender Offer for its 11.50% Mortgage Bonds due 2010
St. Louis, Mo., Oct. 15, 2004---Illinois Power Company, doing business as
AmerenIP and a subsidiary of Ameren Corporation (NYSE: AEE), announced today a
redemption of $192,500,000 aggregate principal amount of its mortgage bonds,
11.50% Series due 2010 ("Bonds") and a cash tender offer for any and all
remaining Bonds ($357,500,000 aggregate principal amount). The CUSIP numbers for
the Bonds are 452092 CK 3 and 452092 CM 9. The redemption and tender offer are
part of Ameren's plan to improve AmerenIP's financial profile and lower its
financing costs, following the Sept. 30, 2004, acquisition of Illinois Power by
Ameren.
Partial Redemption
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Pursuant to an equity clawback provision, AmerenIP has unconditionally
called for redemption on Nov. 15, 2004, $192,500,000 aggregate principal amount
of its Bonds at a price equal to $1,115 per $1,000 principal amount of Bonds,
together with accrued and unpaid interest to the redemption date.
The Bonds will be redeemed with equity contributed to AmerenIP by Ameren
and will be selected in accordance with the applicable procedures for partial
redemptions of The Depository Trust Company, the registered holder of the Bonds.
Copies of the notice of redemption may be obtained from Ameren by calling
Investor Services at (314) 554-3502 (St. Louis) or (800) 255-2237 (toll free).
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Cash Tender Offer
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AmerenIP is offering to purchase for cash any and all of its Bonds that are
not redeemed pursuant to the equity clawback provision. Following the partial
redemption of the Bonds, $357,500,000 aggregate principal amount of Bonds will
remain outstanding and are eligible to participate in the tender offer. The
purchase price will be determined, as described in the Offer to Purchase, in
accordance with standard market practice by reference to a yield of 50 basis
points over the yield on the 2.625% U.S. Treasury Note due Nov. 15, 2006, on the
price determination date. The price determination date is scheduled for 2:00
p.m., New York City time, on Nov. 18, 2004. The tender offer is scheduled to
expire at 5:00 p.m., New York City time, on Nov. 22, 2004. AmerenIP reserves the
right to extend or terminate the tender offer.
The tender offer is not conditioned on any minimum number of Bonds being
tendered. The tender offer is, however, subject to other conditions discussed in
the Offer to Purchase. The tender offer is also intended to satisfy an
obligation to offer to purchase outstanding Bonds resulting from the "change of
control" of Illinois Power.
This release is merely a notification that the tender offer exists and is
not an offer for the tender of the Bonds, which is only being made by the tender
offer materials. If you are interested in participating in the tender offer, you
should review all of the information regarding the terms and conditions of the
tender offer in the Offer to Purchase and related documentation. For additional
information or for copies of the Offer to Purchase or the other offer documents,
you may call Global Bondholder Services Corporation, the information agent, at
(212) 430-3774 (collect) or toll-free at (866) 470-4500. The sole dealer
managers for the tender offer are J.P. Morgan Securities Inc. (866) 834-4666
(toll free) and Lehman Brothers Inc. (212) 528-7581 (collect) and (800) 438-3242
(toll free).
AmerenIP, a regulated utility based in Decatur, Ill., and a subsidiary of
Ameren, serves more than 590,000 electricity customers and nearly 415,000
natural gas customers over 15,000 square miles in northern, central and southern
Illinois. With assets of $17 billion, Ameren, through its subsidiaries, serves
2.3 million electric customers and 900,000 natural gas customers over a 64,000
square-mile area of Missouri and Illinois.
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