WEC ENERGY GROUP, INC.WEC
WEC ENERGY GROUP, INC. Debt Disclosure
LONG-TERM DEBT
The following table is a summary of our long-term debt outstanding (excluding finance/capital leases) as of December 31:
(in millions) | 2019 | 2018 | ||||||||||||||
Long-term debt | Maturity Date | Weighted Average Interest Rate | Balance | Weighted Average Interest Rate | Balance | |||||||||||
WEC Energy Group Senior Notes (unsecured) (1) | 2020-2033 | 3.47 | % | $ | 2,050.0 | 3.54 | % | $ | 1,700.0 | |||||||
WEC Energy Group Junior Notes (unsecured) (1) (2) | 2067 | 4.50 | % | 500.0 | 4.85 | % | 500.0 | |||||||||
WE Debentures (unsecured) | 2021-2095 | 4.26 | % | 2,785.0 | 4.50 | % | 2,735.0 | |||||||||
WPS Senior Notes (unsecured) | 2021-2049 | 4.04 | % | 1,625.0 | 4.21 | % | 1,325.0 | |||||||||
WG Debentures (unsecured) | 2024-2046 | 3.65 | % | 640.0 | 4.04 | % | 490.0 | |||||||||
Integrys Senior Notes (unsecured) | 2020 | 4.17 | % | 250.0 | 4.17 | % | 250.0 | |||||||||
Integrys Junior Notes (unsecured) (3) | 2073 | 6.00 | % | 400.0 | 6.00 | % | 400.0 | |||||||||
PGL First and Refunding Mortgage Bonds (secured) (4) | 2024-2047 | 3.59 | % | 1,520.0 | 3.88 | % | 1,195.0 | |||||||||
NSG First Mortgage Bonds (secured) (5) | 2027-2043 | 3.81 | % | 132.0 | 3.81 | % | 132.0 | |||||||||
MERC Senior Notes (unsecured) | 2027-2047 | 3.51 | % | 120.0 | 3.51 | % | 120.0 | |||||||||
MGU Senior Notes (unsecured) | 2027-2047 | 3.51 | % | 90.0 | 3.51 | % | 90.0 | |||||||||
UMERC Senior Notes (unsecured) | 2029 | 3.26 | % | 160.0 | N/A | — | ||||||||||
Bluewater Gas Storage Senior Notes (unsecured) (6) | 2020-2047 | 3.76 | % | 120.3 | 3.76 | % | 122.7 | |||||||||
ATC Holding Senior Notes (unsecured) | 2025-2030 | 4.05 | % | 475.0 | 4.34 | % | 240.0 | |||||||||
We Power Subsidiaries Notes (secured, nonrecourse) (6) (7) | 2020-2041 | 5.57 | % | 1,005.2 | 5.56 | % | 1,037.9 | |||||||||
WECC Notes (unsecured) | 2028 | 6.94 | % | 50.0 | 6.94 | % | 50.0 | |||||||||
Total | 11,922.5 | 10,387.6 | ||||||||||||||
Integrys acquisition fair value adjustment | 14.3 | 20.6 | ||||||||||||||
Unamortized debt issuance costs | (52.9 | ) | (44.7 | ) | ||||||||||||
Unamortized discount, net and other | (25.6 | ) | (27.8 | ) | ||||||||||||
Total long-term debt, including current portion (8) | 11,858.3 | 10,335.7 | ||||||||||||||
Current portion of long-term debt | (686.9 | ) | (360.1 | ) | ||||||||||||
Total long-term debt | $ | 11,171.4 | $ | 9,975.6 | ||||||||||||
(1) | In connection with our outstanding 2007 Junior Notes, we executed an RCC, which we amended on June 29, 2015, for the benefit of persons that buy, hold, or sell a specified series of our long-term indebtedness (covered debt). Our 6.20% Senior Notes due April 1, 2033 have been designated as the covered debt under the RCC. The RCC provides that we may not redeem, defease, or purchase, and that our subsidiaries may not purchase, any 2007 Junior Notes on or before May 15, 2037, unless, subject to certain limitations described in the RCC, we have received a specified amount of proceeds from the sale of qualifying securities. |
(2) | Variable interest rate reset quarterly. The rates were 4.02% and 4.73% as of December 31, 2019 and 2018, respectively. On July 12, 2018 we executed two interest rate swaps that provided a fixed rate of 4.9765% on $250.0 million of the outstanding notes. The effective rates of 4.50% and 4.85% as of December 31, 2019 and 2018, respectively, were blended rates of the variable and fixed portions. |
(3) | Effective August 2023, Integrys's $400.0 million of 2013 6.00% Junior Subordinated Notes due 2073 will bear interest at the three-month LIBOR plus 322 basis points and will reset quarterly. |
(4) | PGL's First Mortgage Bonds are subject to the terms and conditions of PGL's First Mortgage Indenture dated January 2, 1926, as supplemented. Under the terms of the Indenture, substantially all property owned by PGL is pledged as collateral for these outstanding debt securities. |
PGL has used certain First Mortgage Bonds to secure tax exempt interest rates. The Illinois Finance Authority has issued Tax Exempt Bonds, and the proceeds from the sale of these bonds were loaned to PGL. In return, PGL issued equal principal amounts of certain collateralized First Mortgage Bonds.
The mandatory reset date for PGL's $50.0 million of 1.875% Bonds, series WW, is August 1, 2020.
(5) | NSG's First Mortgage Bonds are subject to the terms and conditions of NSG's First Mortgage Indenture dated April 1, 1955, as supplemented. Under the terms of the Indenture, substantially all property owned by NSG is pledged as collateral for these outstanding debt securities. |
(6) | The long-term debt of Bluewater and We Power's subsidiaries amortizes on a mortgage-style basis. |
(7) | We Power's subsidiaries' senior notes are secured by a collateral assignment of the leases between We Power's subsidiaries and WE related to PWGS and ERGS, as applicable. |
(8) | The amount of long-term debt on our balance sheets includes finance/capital lease obligations of $45.9 million and $23.3 million at December 31, 2019 and 2018, respectively. |
We amortize debt premiums, discounts, and debt issuance costs over the life of the debt and we include the costs in interest expense.
WEC Energy Group, Inc.
In March 2019, we issued $350.0 million of 3.10% Senior Notes due March 8, 2022. We used the net proceeds to repay short-term debt, and for working capital and other general corporate purposes.
Wisconsin Electric Power Company
In December 2019, WE issued $300.0 million of 2.05% Debentures due December 15, 2024, and used the net proceeds to repay WE's $250.0 million of 4.25% Debentures which matured in December 2019, to repay short-term debt, and for working capital and other corporate purposes.
Wisconsin Public Service Corporation
In August 2019, WPS issued $300.0 million of 3.30% Senior Notes due September 1, 2049, and used the net proceeds to repay short-term debt and for working capital and other corporate purposes.
Wisconsin Gas LLC
In October 2019, WG issued $150.0 million of 2.38% Debentures due November 1, 2024, and used the net proceeds to repay short-term debt and for working capital and other corporate purposes.
The Peoples Gas Light and Coke Company
In September 2019, PGL issued $275.0 million of 2.96% Bonds, Series GGG due September 1, 2029. PGL used the net proceeds to repay PGL's $75.0 million of 4.63% Bonds, Series UU which matured in September 2019, and for general corporate purposes, including capital expenditures and the repayment of short-term debt.
In November 2019, PGL issued $75.0 million of 2.64% Bonds, Series HHH due November 1, 2024 and $50.0 million of 3.06% Bonds, Series III due November 1, 2031. PGL used the net proceeds for general corporate purposes, including capital expenditures and the repayment of short-term debt.
Upper Michigan Energy Resources Corporation
In August 2019, UMERC issued $160.0 million of 3.26% Senior Notes due August 28, 2029, and used the net proceeds to redeem its long-term debt to WEC Energy Group and for working capital and general corporate purposes.
ATC Holding LLC
In September 2019, ATC Holding issued $235.0 million of 3.75% Senior Notes due September 16, 2029, and used the net proceeds to balance its capital structure.
The following table shows the long-term debt securities (excluding finance leases) maturing within one year of December 31, 2019:
(in millions) | Interest Rate | Maturity Date * | Principal Amount | |||||
WEC Energy Group Senior Notes (unsecured) | 2.45% | June | $ | 400.0 | ||||
Integrys Senior Notes (unsecured) | 4.17% | November | 250.0 | |||||
Bluewater Gas Storage Senior Notes (unsecured) | 3.76% | Semi-annually | 2.5 | |||||
We Power Subsidiaries Notes – PWGS (secured, nonrecourse) | 4.91% | Monthly | 6.6 | |||||
We Power Subsidiaries Notes – ERGS (secured, nonrecourse) | 5.209% | Semi-annually | 12.6 | |||||
We Power Subsidiaries Notes – ERGS (secured, nonrecourse) | 4.673% | Semi-annually | 9.7 | |||||
We Power Subsidiaries Notes – PWGS (secured, nonrecourse) | 6.00% | Monthly | 5.5 | |||||
Total | $ | 686.9 | ||||||
* | Maturity dates listed as semi-annually and monthly are associated with debt that amortizes on a mortgage-style basis. |
The following table shows the future maturities of our long-term debt outstanding (excluding obligations under finance leases) as of December 31, 2019:
(in millions) | Payments | |||
2020 | $ | 686.9 | ||
2021 | 1,338.8 | |||
2022 | 390.8 | |||
2023 | 42.8 | |||
2024 | 570.0 | |||
Thereafter | 8,893.2 | |||
Total | $ | 11,922.5 | ||
Certain long-term debt obligations contain financial and other covenants related to payment of principal and interest when due, maintaining certain total funded debt to capitalization ratios, and various other obligations. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2019 | Feb 27, 2020 | Showing above |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.