By Aleesia Forni
Virginia Beach, June 4 – Wisconsin Energy Corp. priced $1.2 billion of senior notes (A3/BBB+/BBB+) in three tranches on Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The sale included $300 million of 1.65% three-year notes priced at 99.944 to yield 1.669% with a spread of Treasuries plus 65 basis points.
Pricing was at the tight end of the Treasuries plus 70 bps area guidance, tightened from initial talk in the Treasuries plus 90 bps area.
A $400 million tranche of 2.45% five-year notes sold at Treasuries plus 85 bps. Pricing was at 99.817 to yield 2.489%.
Guidance was set in the Treasuries plus 90 bps area after having firmed from the 110 bps area over Treasuries.
Finally, $500 million of 3.55% 10-year notes priced at 99.983 to yield 3.552%, or Treasuries plus 125 bps.
The issue sold at the tight end of the Treasuries plus 130 bps area guidance. Initial talk was set in the Treasuries plus 145 bps area.
BofA Merrill Lynch, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., KeyBanc Capital Markets and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to fund the acquisition of Integrys Energy Group Inc.
Wisconsin Energy is a gas and electric company based in Milwaukee.
| Issuer: | Wisconsin Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., KeyBanc Capital Markets, Wells Fargo Securities LLC
|
| Co-managers: | Loop Capital Markets, PNC Capital Markets LLC, Samuel A. Ramirez & Co. Inc.
|
| Trade date: | June 4
|
| Settlement date: | June 10
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $300 million
|
| Maturity: | June 15, 2018
|
| Coupon: | 1.65%
|
| Price: | 99.944
|
| Yield: | 1.669%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 70 bps area, tightened from 90 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2020
|
| Coupon: | 2.45%
|
| Price: | 99.817
|
| Yield: | 2.489%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 90 bps area, tightened from 110 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to May 15, 2020, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2025
|
| Coupon: | 3.55%
|
| Price: | 99.983
|
| Yield: | 3.552%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 130 bps area, tightened from 145 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to March 15, 2025, then callable at par
|
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