By Cristal Cody
Chicago, Sept. 15 – Wisconsin Electric Power Co. sold a $500 million offering of 4.75% debentures with a 10-year tenor (A2/A-/A+) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The debentures priced at 99.794 to yield 4.776%, or at a 135 basis points spread to the benchmark Treasury. Price talk was in the 162.5 bps area, a market source said.
The debentures will have a make-whole call with a Treasuries plus 25 bps premium until June 30, 2032 when they will be callable at par.
BMO Capital Markets Corp., BofA Securities, Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc. are the bookrunners.
Proceeds will be used to pay or reimburse the payment of, in whole or in part, existing and new expenditures for the acquisition, construction and development of wind and solar electric generating facilities and related energy storage assets. This may include disbursements made during the 24 months preceding the issue date of the debentures or made at any time following the issue date up to their maturity date.
Wisconsin Electric Power is a Milwaukee-based subsidiary of WEC Energy Group, Inc.
| Issuer: | Wisconsin Electric Power Co.
|
| Amount: | $500 million
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| Issue: | Debentures
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| Maturity: | Sept. 30, 2032
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| Bookrunners: | BMO Capital Markets Corp., BofA Securities, Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc.
|
| Co-managers: | Siebert Williams Shank & Co., LLC and Samuel A. Ramirez & Co., Inc.
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| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | In-house counsel and Troutman Pepper Hamilton Sanders LLP
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Coupon: | 4.75%
|
| Price: | 99.794
|
| Yield: | 4.776%
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| Spread: | Treasuries plus 135 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps until June 30, 2032; thereafter at par
|
| Trade date: | Sept. 14
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| Settlement date: | Sept. 22
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: A+
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 162.5 bps area
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| Cusip: | 976656CN6
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