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MILWAUKEE - WEC Energy Group, Inc. (NYSE: WEC), a utility company with a market capitalization of $33.7 billion, announced today its intention to offer $700 million in convertible senior notes due in 2028 to qualified institutional buyers, subject to market conditions. The energy company also anticipates giving initial purchasers an option to buy up to an additional $105 million of these notes within a 13-day period starting from the date of issue. According to InvestingPro data, the company’s current ratio of 0.5 indicates that short-term obligations exceed liquid assets, which may explain the timing of this debt offering.
The convertible notes, which are senior unsecured obligations, will mature on June 1, 2028, unless they are converted or repurchased before this date according to their terms. Interest will be payable semiannually. The specifics of the conversion price, interest rate, and other terms will be established at the time of pricing. InvestingPro analysis shows that WEC has maintained dividend payments for 55 consecutive years, with a current dividend yield of 3.4%, demonstrating a strong track record of shareholder returns.
Prior to March 1, 2028, conversions are restricted to certain events and periods. After this date, note holders can convert at any time until the second scheduled trading day before the maturity date. Upon conversion, WEC Energy will settle in cash, shares of its common stock, or a mix of both, at its discretion.
The proceeds from this offering are earmarked for general corporate purposes, including the repayment of short-term debt. This press release does not serve as an offer to sell or a solicitation to buy the securities. The notes, and any common stock that may be issued upon their conversion, have not been registered under the Securities Act or any state securities laws, and may not be offered or sold without registration or an applicable exemption from registration requirements.
WEC Energy Group serves 4.7 million customers across several states and owns a range of energy subsidiaries, including a fleet of renewable generation facilities. Trading above its Fair Value according to InvestingPro analysis, the company maintains strong profitability with a gross margin of 43.5%. Discover more insights and 6 additional ProTips about WEC Energy Group with an InvestingPro subscription, including detailed valuation metrics and comprehensive Pro Research Reports available for over 1,400 US stocks.
The company cautions that statements regarding the offering’s anticipated terms and the use of proceeds are forward-looking and subject to risks and uncertainties that could cause actual results to differ. These include market conditions, the trading price of WEC Energy’s stock, and other business risks detailed in the company’s latest annual report and other SEC filings. There is no guarantee that the offering will be completed as planned, or at all. The information in this article is based on a press release statement from WEC Energy Group.
In other recent news, WEC Energy Group reported impressive financial results for the first quarter of 2025, with earnings per share reaching $2.27, surpassing the forecasted $1.97. The company’s revenue also exceeded expectations, coming in at $3.15 billion compared to the projected $2.87 billion. Analysts at Scotiabank have raised their price target for WEC Energy Group to $115, maintaining a Sector Outperform rating, citing the company’s potential for above-average earnings and dividend growth. WEC Energy Group also announced executive changes, appointing Michael Hooper as Executive Vice President and Chief Operating Officer. The company held its annual shareholder meeting, where shareholders voted on six proposals, including the election of thirteen directors and the ratification of Deloitte & Touche LLP as independent auditors. Additionally, WEC Energy Group is focusing on renewable energy projects and infrastructure investments, reaffirming its 2025 earnings guidance between $5.17 and $5.27 per share. The company continues to navigate a favorable regulatory environment and anticipates announcing a significant capital expenditure increase in the coming months.
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