By Cristal Cody
Tupelo, Miss., Oct. 5 – WEC Energy Group, Inc. priced $950 million of senior notes (Baa1/BBB+/BBB+) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 1.375% seven-year notes priced at 99.92 to yield 1.387%, or a Treasuries plus 85 basis points spread.
WEC Energy sold $450 million of 1.8% 10-year notes with a 105 bps spread over Treasuries. The notes priced at 99.909 to yield 1.81%.
Barclays, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
The Milwaukee-based electricity and natural gas service provider will use the proceeds to redeem its $600 million of 3.375% senior notes due June 15, 2021 and its $350 million of 3.1% senior notes due March 8, 2022 and for other general corporate purposes.
| Issuer: | WEC Energy Group, Inc.
|
| Amount: | $950 million
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| Description: | Senior notes
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| Bookrunners: | Barclays, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Senior co-manager: | Goldman Sachs & Co. LLC
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| Co-managers: | Siebert Williams Shank & Co. LLC and Comerica Securities Inc.
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| Trade date: | Oct. 5
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| Settlement date: | Oct. 9
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
|
|
|
| Seven-year notes
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| Amount: | $500 million
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| Maturity: | Oct. 15, 2027
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| Coupon: | 1.375%
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| Price: | 99.92
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| Yield: | 1.387%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call at price equal to greater of par or Treasuries plus 15 bps before Aug. 15, 2027; thereafter at par
|
|
|
| 10-year notes
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| Amount: | $450 million
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| Maturity: | Oct. 15, 2030
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| Coupon: | 1.8%
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| Price: | 99.909
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| Yield: | 1.81%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at price equal to greater of par or Treasuries plus 20 bps before July 15, 2030; thereafter at par
|
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