FWP 1 tm213205d17_fwp.htm FWP

 

Free Writing Prospectus, dated May 4, 2021

Filed pursuant to Rule 433 under the Securities Act of 1933

Supplementing the Preliminary Prospectus, dated April 27, 2021

Registration Statement Nos. 333-252252 and 333-252252-01

 

WEPCo Environmental Trust Finance I, LLC

(Issuing Entity)

 

PRICING TERM SHEET

 

$118,814,000 Environmental Trust Bonds, Series 2021

 

Issuing Entity: WEPCo Environmental Trust Finance I, LLC
   
Sponsor, Depositor and Initial Servicer: Wisconsin Electric Power Company
   
Trustee: U.S. Bank National Association
   
Bookrunner: Barclays Capital Inc.
   
Co-Manager: Drexel Hamilton, LLC
   
Expected Ratings (Moody’s/S&P/Fitch): Aaa (sf)/AAA (sf)/AAAsf(1)
   
Closing Date / Settlement Date: May 12, 2021 (2)
   
Interest Payment Dates: June 15 and December 15, commencing on December 15, 2021
   
Applicable Time: 11:04 AM (Eastern time) on May 4, 2021

 

Proceeds:The total initial price to the public is $118,813,204. The total amount of the underwriting discounts and commissions is $475,256. The total amount of proceeds to the Issuing Entity before deduction of expenses (estimated to be $4,830,639) is $118,337,948.

 

 

(1)         A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

 

(2)      The Issuing Entity expects to deliver the bonds against payment for the bonds on or about May 12, 2021, which will be the sixth business day following the date of pricing of the bonds. Since trades in the secondary market generally settle in two business days, purchasers who wish to trade bonds on the date of pricing or the succeeding three business days will be required, by virtue of the fact that the bonds initially will settle in T+6, to specify alternative settlement arrangements to prevent a failed settlement.

 

Tranche  Principal
Amount
Offered		   Expected
Weighted
Average
Life
(years)		   Scheduled
Final
Payment
Date		  Final
Maturity
Date		  Interest
Rate		   Initial
Price to
Public(3)		   Underwriting
Discounts and
Commissions		   Proceeds to
Issuing Entity
(Before
Expenses)		 
A  $118,814,000    6.81   12/15/2033  12/15/2035   1.578%   99.99933%   0.40%  $118,337,948 

 

(3)  Interest on the bonds will accrue from May 12, 2021 and must be paid by the purchaser if the bonds are delivered after that date.

 

   Tranche A
CUSIP  950739 AA0
ISIN  US950739AA02

 

 

 

 

EXPECTED SINKING FUND SCHEDULE

 

Semi- Annual
Payment Date		  Scheduled
Principal
Payment		 
12/15/21  $4,127,048 
6/15/22  $4,359,224 
12/15/22  $4,393,619 
6/15/23  $4,428,284 
12/15/23  $4,463,224 
6/15/24  $4,498,438 
12/15/24  $4,533,931 
6/15/25  $4,569,704 
12/15/25  $4,605,759 
6/15/26  $4,642,098 
12/15/26  $4,678,724 
6/15/27  $4,715,640 
12/15/27  $4,752,846 
6/15/28  $4,790,346 
12/15/28  $4,828,142 
6/15/29  $4,866,236 
12/15/29  $4,904,630 
6/15/30  $4,943,328 
12/15/30  $4,982,331 
6/15/31  $5,021,641 
12/15/31  $5,061,262 
6/15/32  $5,101,195 
12/15/32  $5,141,444 
6/15/33  $

5,182,010

12/15/33  $5,222,896 
Total Payments(4)  $118,814,000 

 

(4)            Totals may not add up due to rounding.

 

 

 

 

EXPECTED OUTSTANDING PRINCIPAL BALANCE

 

Semi- Annual Payment
Date		 

Tranche A

Balance

 
Closing Date  $118,814,000 
12/15/21  $114,686,952 
6/15/22  $110,327,728 
12/15/22  $105,934,109 
6/15/23  $101,505,825 
12/15/23  $97,042,601 
6/15/24  $92,544,163 
12/15/24  $88,010,232 
6/15/25  $83,440,528 
12/15/25  $78,834,769 
6/15/26  $74,192,671 
12/15/26  $69,513,947 
6/15/27  $64,798,307 
12/15/27  $60,045,461 
6/15/28  $55,255,115 
12/15/28  $50,426,973 
6/15/29  $45,560,737 
12/15/29  $40,656,107 
6/15/30  $35,712,779 
12/15/30  $30,730,448 
6/15/31  $25,708,807 
12/15/31  $20,647,545 
6/15/32  $15,546,350 
12/15/32  $10,404,906 
6/15/33  $5,222,896 
12/15/33  $- 

 

 

 

 

Subject to the terms and conditions in the underwriting agreement among us, Wisconsin Electric Power Company and the underwriters, for whom Barclays Capital Inc. is acting as representative, we have agreed to sell to the underwriters, and the underwriters have severally agreed to purchase, the principal amount of the bonds listed opposite each underwriter’s name below:

 

Underwriter  Tranche A 
Barclays Capital Inc.  $95,052,000 
Drexel Hamilton, LLC  $23,762,000 
Total  $118,814,000 

 

The underwriters may allow, and dealers may reallow, a discount not to exceed the percentage listed below:

 

    Selling Concession    Reallowance Discount 
Tranche A   0.240%   0.120%

 

After the initial public offering, the public offering prices, selling concessions and reallowance discounts may change.

 

Wisconsin Electric Power Company and the Issuing Entity have filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Wisconsin Electric Power Company and the Issuing Entity have filed with the SEC as exhibits to the registration statement for more complete information about the Issuing Entity and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Wisconsin Electric Power Company, the Issuing Entity, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Barclays Capital Inc. toll free at 1-888-603-5847.