By Marisa Wong
Los Angeles, Sept. 22 – WEC Energy Group, Inc. priced two tranches of senior notes (Baa1/BBB+/BBB+) totaling $900 million on Thursday, according to an FWP filing with the Securities and Exchange Commission.
WEC Energy sold $500 million of 5% three-year notes at 99.928 to yield 5.026%, or a spread of 90 basis points over Treasuries.
The company also priced $400 million of 5.15% five-year notes at 99.794 to yield 5.197%, or a spread of 128 bps over Treasuries.
Each series features a make-whole call until one month prior to maturity and then a par call.
Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used to repay short-term debt and for general corporate purposes.
WEC Energy is a Milwaukee-based diversified holding company for electric and gas businesses in Wisconsin, Illinois, Michigan and Minnesota.
| Issuer: | WEC Energy Group, Inc.
|
| Amount: | $900 million
|
| Issue: | Senior notes
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Comerica Securities, Inc., Goldman Sachs & Co. LLC and Penserra Securities LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Troutman Pepper Hamilton Sanders LLP; in-house counsel
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Trade date: | Sept. 22
|
| Settlement date: | Sept. 27
|
| Expected ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
|
|
| 2025 notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 27, 2025
|
| Coupon; | 5%
|
| Price: | 99.928
|
| Yield: | 5.026%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps at any time prior to Aug. 27, 2025; par call after that
|
| Cusip: | 92939UAH9
|
|
|
| 2027 notes
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| Amount: | $400 million
|
| Maturity: | Oct. 1, 2027
|
| Coupon: | 5.15%
|
| Price: | 99.794
|
| Yield: | 5.197%
|
| Spread: | Treasuries plus 128 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps at any time prior to Sept. 1, 2027; par call after that
|
| Cusip: | 92939UAJ5
|
|
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