Back to top

Analyst Blog

Ameren Missouri, a subsidiary of Ameren Corp. (AEE - Analyst Report), announced that it has priced $350.0 million of 3.50% senior notes due 2024. The notes were issued at a discount of 99.982% of their principal amount. The company added that the offering will close on Apr 4, 2014.

Ameren’s unit intends to utilize the net proceeds from the offering to repay $104 million of 5.50% senior notes due on May 15, 2014, and the outstanding short-term debt.

It is a common practice among companies to refinance its debts. Refinancing will allow Ameren to use the funds in business for a longer period. The new offerings will increase the interest burden of the company by $12.3 million.

In 2013, the company’s free cash flow was $314 million compared with $627 million in 2012, while cash generated from operating activities was $1.69 billion, in line with the year-ago level. The company has repaid $399 million of long-term debt in 2013.

Ameren Corp., a Zacks Rank #2 (Buy) stock, reported strong financial results in the fourth quarter of 2013, surpassing the Zacks Consensus Estimate by 58.3% due to increased rates for Missouri electric and Illinois transmission service.

The company expects earnings per share to grow at a 7% to 10% compound annual rate from 2013 through 2018. Ameren expects positive returns from its infrastructure investments in FERC-regulated transmission and Illinois energy delivery services to boost its top line.

Some better-ranked stocks in the same industry include Otter Tail Corp. (OTTR - Snapshot Report), CPFL Energia S.A.  (CPL - Snapshot Report) and Public Service Enterprise Group Inc. (PEG - Analyst Report), each carrying a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.99 +2.75%
CHINA BIOLO… CBPO 46.95 +1.92%
NN INC NNBR 28.43 +1.46%
INTEL CP INTC 34.87 +1.06%
CHIPOTLE ME… CMG 685.34 +1.02%