WEC Energy Prices $2 Billion Of 6.750% And 6.950% Junior Notes Due 2057
The utility holding company will net $1.98 billion after the underwriting discount, with closing set for Wednesday unless postponed.
WEC Energy Group, the Milwaukee utility holding company, agreed Monday to sell $2 billion of junior subordinated notes due 2057, split into two $1 billion series, according to an 8-K it filed Wednesday. The notes carry rates of 6.750% and 6.950%.
Two series, one 2057 maturity
The Series 2026A notes pay 6.750% and the Series 2026B notes pay 6.950%. Both are fixed-to-fixed reset-rate notes, meaning the coupon is fixed now and resets later, and both fall due August 4, 2057, per the underwriting agreement. They are junior subordinated, so they rank below the company's other debt.
Underwriters will pay 99.000% of face value for each series. That leaves WEC $990 million from each, or $1.98 billion in total, before offering expenses.
The notes are issued under a 1999 indenture with The Bank of New York Mellon Trust Company as trustee, and sold off an automatic shelf registration statement on Form S-3.
Twenty banks, five in the lead
Citigroup, J.P. Morgan, RBC Capital Markets, TD Securities and Wells Fargo act as representatives of 20 underwriters. Each of the five takes $110 million or more of each series. Barclays, BMO, BofA, Goldman Sachs, KeyBanc, Mizuho, Morgan Stanley, MUFG, PNC, Scotia and U.S. Bancorp take $33.636 million each, and four smaller firms take $20 million each.
The utility behind the paper
WEC is a holding company whose subsidiaries provide regulated natural gas and electricity and invest in renewable energy. As of December 31, 2025, it had about 1.70 million electric customers and 8,375 megawatts of generation capacity. It also holds an approximately 60% stake in ATC, an electric transmission company.
The agreement requires the notes to be rated by Moody's, S&P Global Ratings and Fitch at closing, and bars a downgrade or negative review before then. S&P Global Ratings has published a rating note on the proposed notes.
Payment and delivery are set for 8:00 a.m. Central Time on Wednesday, unless the closing is postponed.
Sources
- 8-K Filing — WEC ENERGY GROUP, INC. (WEC) — SEC EDGAR
- Exhibit tm2628873d2_ex1-1.htm — WEC ENERGY GROUP, INC. 8-K exhibit — SEC EDGAR
- WEC Energy Group Inc.'s Proposed Fixed-To-Fixed R | S&P Global Ratings — spglobal.com
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