SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report
(Date of earliest
event reported): January 15, 1999
Wisconsin Gas Company
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(Exact name of registrant as specified in its charter)
Wisconsin 1-7530 39-0476515
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
626 East Wisconsin Avenue, Milwaukee, WI
53202
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(Address of principal executive offices including zip code)
(414) 291-7000
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(Registrant's telephone number)
Item 5 Other Events.
On January 15, 1999, Wisconsin Gas Company (the "Company") agreed to
sell $50,000,000 aggregate principal amount of its 5 1/2% Notes due 2009 (the
"Notes") in a public offering through Morgan Stanley & Co. Incorporated, Robert
W. Baird & Co. Incorporated and A. G. Edwards & Sons, Inc. (the "Underwriters").
The closing for the sale of the Notes is scheduled for January 21, 1999. The
Notes are registered on a Registration Statement on Form S-3 (Registration No.
333-68783) filed with the Securities and Exchange Commission. Final versions of
the Underwriting Agreement by and between the Company and the Underwriters, and
the Officers' Certificate creating the Notes, are filed herewith.
Item 7 Financial Statements and Exhibits.
(a) Not Applicable.
(b) Not Applicable.
(c) Exhibits
The exhibits listed in the accompanying Exhibit Index are
filed as part of this Current Report on Form 8-K.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WISCONSIN GAS COMPANY
Date: January 20, 1999 By: /s/ Joseph P. Wenzler
Joseph P. Wenzler
Senior Vice President and Chief
Financial Officer
<PAGE>
WISCONSIN GAS COMPANY
EXHIBIT INDEX TO FORM 8-K
Report Dated January 15, 1999
Exhibit
(1) Underwriting Agreement, dated as of January 15, 1999, by and between
Wisconsin Gas Company and Morgan Stanley & Co. Incorporated, Robert W.
Baird & Co. Incorporated and A. G. Edwards & Sons, Inc.
(4) Officers' Certificate, dated as of January 15, 1999, executed and
delivered in connection with the issuance and sale of Wisconsin Gas
Company's 5 1/2% Notes due 2009.
$50,000,000
WISCONSIN GAS COMPANY
5 1/2% Notes Due 2009
UNDERWRITING AGREEMENT
January 15, 1999
<PAGE>
January 15, 1999
Morgan Stanley & Co. Incorporated
Robert W. Baird & Co. Incorporated
A.G. Edwards & Sons, Inc.
c/o Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036
Dear Sirs and Mesdames:
Wisconsin Gas Company, a Wisconsin corporation (the "Company"),
proposes to issue and sell to the several Underwriters named in Schedule I
hereto (the "Underwriters") $50,000,000 principal amount of its 5 1/2% Notes Due
2009 (the "Securities") to be issued pursuant to the provisions of an Indenture
dated as of September 1, 1990 (the "Indenture") between the Company and Firstar
Bank Milwaukee, N.A., as Trustee (the "Trustee").
The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement, including a prospectus, relating to the
Securities. The registration statement as amended at the time it became
effective, including all documents incorporated by reference therein and the
information (if any) deemed to be part of the registration statement at the time
of effectiveness pursuant to Rule 430A under the Securities Act of 1933, as
amended (the "Securities Act"), is hereinafter referred to as the "Registration
Statement"; the prospectus, including all documents incorporated by reference
therein and any supplement thereto, in the form first used to confirm sales of
Securities is hereinafter referred to as the "Prospectus."
1. Representations and Warranties. (A) The Company represents and
warrants to and agrees with each of the Underwriters that:
(a) The Registration Statement has become effective; no stop order
suspending the effectiveness of the Registration Statement is in effect, and no
proceedings for such purpose are pending before or threatened by the Commission.
(b) (i) Each document, if any, filed or to be filed pursuant to the
Securities Exchange Act of 1934, as amended (the "Exchange Act") and
incorporated by reference in the Prospectus complied or will comply when so
filed in all material respects with the Exchange Act and the applicable rules
and regulations of the Commission thereunder and the Trust Indenture Act of
1939, as amended (the "Trust Indenture Act"), (ii) each part of the Registration
Statement, when such part became effective, did not contain and each such part,
as amended or supplemented, if applicable, will not contain any untrue
<PAGE>
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, (iii)
the Registration Statement and the Prospectus comply and, as amended or
supplemented, if applicable, will comply in all material respects with the
Securities Act and the applicable rules and regulations of the Commission
thereunder, and (iv) the Prospectus does not contain and, as amended or
supplemented, if applicable, will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading,
except that the representations and warranties set forth in this Section 1(b) do
not apply (A) to statements or omissions in the Registration Statement or the
Prospectus based upon information relating to any Underwriter furnished to the
Company in writing by such Underwriter through you expressly for use therein or
(B) to that part of the Registration Statement that constitutes the Statement of
Eligibility (Form T-1) under the Trust Indenture Act of the Trustee.
(c) The Company is validly existing as a corporation in good standing
under the laws of the jurisdiction of its incorporation and has the corporate
power and authority to own its property and to conduct its business as described
in the Prospectus; the Company is in possession of and operating in compliance
with all franchises, grants, authorizations, licenses, permits, easements,
consents, certificates and orders required for the conduct of its business, all
of which are valid and in full force and effect (except where any failure to do
so would not result in a material adverse change in the condition (financial or
otherwise), business or results of operations of the Company).
(d) The Company has no subsidiaries.
(e) This Agreement has been duly authorized, executed and delivered by
the Company.
(f) The Indenture has been duly qualified under the Trust Indenture Act
and has been duly authorized, executed and delivered by the Company and is a
valid and binding agreement of the Company, enforceable in accordance with its
terms except as the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditors' rights generally and general
principles of equity and subject to the qualification that certain provisions
thereof may be unenforceable in whole or in part under the laws of the State of
Wisconsin, but inclusion of such provisions does not affect the validity of the
Indenture and the Indenture contains legally adequate provisions for the
realization of the principal legal right and benefits afforded thereby; and the
Indenture conforms, in all material respects, to the description thereof in the
Prospectus.
(g) The Securities have been duly authorized and, when executed and
authenticated in accordance with the provisions of the Indenture and delivered
to and paid for by the Underwriters in accordance with the terms of this
Agreement, will be entitled to the benefits of the Indenture and will be valid
and binding obligations of the Company, enforceable in accordance with their
terms except as the enforceability thereof
<PAGE>
may be limited by bankruptcy, insolvency or similar laws affecting creditors'
rights generally and general principles of equity and subject to the
qualification that certain provisions thereof may be unenforceable in whole or
in part under he laws of the State of Wisconsin, but inclusion of such
provisions does not affect the validity of the Securities and the Securities
contain legally adequate provisions for the realization of the principal legal
rights and benefits afforded thereby; and the Securities will conform, at the
time of their issuance, in all material respects with the description thereof in
the Prospectus.
(h) The Company is not in violation of its Restated Articles of
Incorporation or in default in the performance or observance of any material
obligation, agreement, covenant or condition contained in any statute, contract,
indenture, mortgage, deed of trust, loan agreement, note, lease or other
material agreement or instrument to which it is a party or by which it or its
property may be bound, which violations or defaults would individually or in the
aggregate result in a material adverse change in the condition (financial or
otherwise), business or results of operations of the Company; no consent,
approval, authorization or order of any court or governmental authority or
agency is required in connection with the sale of the Securities to the
Underwriters, except such as may be required under the Securities Act and state
securities laws and except as is required to be obtained from the Public Service
Commission of Wisconsin; and the execution and delivery of this Agreement and
the consummation of the transactions contemplated herein will not conflict with
or constitute a breach of, or default under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Company pursuant to, any contract, indenture, mortgage, loan agreement, note,
lease or other instrument to which the Company is a party or by which it is
bound, nor will such action result in any violation of the provisions of the
charter or by-laws of the Company, or any law, administrative regulation, or
administrative or court decree, other than in each case such breaches, defaults
or violations which individually or in the aggregate would not result in a
material adverse change in the condition (financial or otherwise), business or
results of operations of the Company;
(i) Subsequent to the respective dates as of which information is given
in the Registration Statement and Prospectus, and except as set forth or
contemplated thereby, the Company has not incurred any liabilities or
obligations, direct or contingent, nor entered into any transactions not in the
ordinary course of business which in either case are material to the Company;
there has not occurred any material adverse change in the condition (financial
or otherwise), business or operations of the Company, whether or not arising in
the ordinary course; and there has not been any material change in the capital
stock or long-term debt of the Company, except for payments upon maturity on
outstanding first mortgage bonds;
(j) There are no legal or governmental proceedings pending or
threatened to which the Company is a party or of which any of the properties of
the Company is subject that are required to be described in the Registration
Statement or the Prospectus and are not so described, or which, if determined
adversely to the Company, the Company reasonably believes would individually or
in the aggregate result in a material adverse change in the condition (financial
or otherwise), business or results of operations of the Company or which would
materially and adversely affect the consummation
<PAGE>
of the transactions contemplated by this Agreement; and to the best of the
Company's knowledge no such proceedings are threatened or contemplated by
governmental authorities or threatened by others; and there are no statutes,
regulations, contracts or other documents that are required to be described in
the Registration Statement or the Prospectus or to be filed as exhibits to the
Registration Statement that are not described or filed as required.
(k) Each preliminary prospectus filed as part of the registration
statement as originally filed or as part of any amendment thereto, or filed
pursuant to Rule 424 under the Securities Act, complied when so filed in all
material respects with the Securities Act and the applicable rules and
regulations of the Commission thereunder.
(l) The Company has obtained a certificate of authority from the Public
Service Commission of Wisconsin (the "Wisconsin Commission") with respect to the
Securities authorizing the issue and sale of the Securities by the Company on
the terms set forth or contemplated in this Agreement and in the Registration
Statement; the Company will make such additional filings as are required under
said certificate of authority in a timely fashion.
(m) Other than WICOR, Inc. and Marshall & Ilsley Trust Company, as
trustee of the Wisconsin Gas Company Employees' Savings Plan, no person or
corporation, which is a "holding company" or a "subsidiary company" of a
"holding company", within the meaning of such terms as defined in the Public
Utility Holding Company Act of 1935, directly or indirectly owns, controls or
holds with power to vote, 10% or more of the outstanding voting securities of
the Company; and each of the Company and WICOR, Inc. is presently exempt from
the provisions of the Public Utility Holding Company Act of 1935 which would
require it to register thereunder.
(n) The Company is not an "investment company" or an entity
"controlled" by an "investment company" as such terms are defined in the
Investment Company Act of 1940, as amended.
(B) Any certificate signed by an officer of the Company and delivered
to you or counsel for the Underwriters at the Closing Time in connection with
the offering of Notes shall be deemed a representation and warranty of the
Company, as to the matters covered thereby, to each Underwriter participating in
the offering.
2. Agreements to Sell and Purchase. The Company hereby agrees to sell
to the several Underwriters, and each Underwriter, upon the basis of the
representations and warranties herein contained, but subject to the conditions
hereinafter stated, agrees, severally and not jointly, to purchase from the
Company the respective principal amounts of Securities set forth in Schedule I
hereto opposite its name at 98.602% of their principal amount plus accrued
interest, if any, from January 21, 1999 to the date of payment and delivery.
<PAGE>
3. Terms of Public Offering. The Company is advised by you that the
Underwriters propose to make a public offering of their respective portions of
the Securities as soon after the Registration Statement and this Agreement have
become effective as in your judgment is advisable. The Company is further
advised by you that the Securities are to be offered to the public initially at
99.252% of their principal amount (the "Public Offering Price") plus accrued
interest, if any, from January 21, 1999 to the date of payment and delivery and
to certain dealers selected by you at a price that represents a concession not
in excess of 0.40% of their principal amount under the Public Offering Price,
and that any Underwriter may allow, and such dealers may reallow, a concession,
not in excess of 0.25% of their principal amount, to any Underwriter or to
certain other dealers.
4. Payment and Delivery. Payment for the Securities shall be made by
wire transfer of Federal or other immediately available funds to the account
designated by the Company at 10:00 a.m., local time, on January 21, 1999. The
time and date of such payment are hereinafter referred to as the "Closing Date."
Payment for the Securities shall be made against delivery to you for
the respective accounts of the several Underwriters of one or more global
certificates representing the Securities registered in the name of Cede & Co.
5. Conditions to the Underwriters' Obligations. The obligations of the
Company to sell the Securities to the Underwriters and the several obligations
of the Underwriters to purchase and pay for the Securities are subject to the
condition that the Registration Statement shall have become effective on the
date hereof.
In addition, the several obligations of the Underwriters are subject to
the accuracy of the representations and warranties on the part of the Company
herein contained, to the accuracy of the statements of the Company's officers
made in any certificate furnished pursuant to the provisions hereof, to the
performance by the Company of all of its covenants and other obligations
hereunder and to the following further conditions:
(a) at the Closing Time
(i) no stop order suspending the effectiveness of the
Registration Statement shall have been issued under the Securities Act,
no order suspending trading or striking or withdrawing any Securities
to be listed on a national securities exchange from listing and
registration under the Exchange Act shall be in effect, and no
proceedings under the Securities Act or the Exchange Act therefor shall
have been initiated or threatened by the Commission, (ii) the rating
assigned by any "nationally recognized statistical rating
organization", as such term is defined for purposes of Rule 436(g)(2)
under the Securities Act, to any debt securities, preferred stock or
other obligations of the Company as of the date of this Agreement shall
not have been lowered since the execution of this Agreement and no
notice indicating an intended or potential downgrading of any
<PAGE>
such securities shall have been given by any such rating organization
since the date of this Agreement, and (iii) there shall not have come
to your attention any facts that would reasonably cause you to believe
that the Prospectus at the time it was required to be delivered to a
purchaser of the Securities, contained an untrue statement of a
material fact or omitted to state a material fact necessary in order to
make the statements therein, in the light of the circumstances existing
at such time, not misleading.
(b) The Underwriters shall have received on the Closing Date an opinion
of Foley & Lardner, outside counsel for the Company, dated the Closing Date, in
form and substance satisfactory to you, to the effect that:
(i) the Company is validly existing as a corporation under the
laws of the jurisdiction of its incorporation, and has the corporate
power and authority to own its property and to conduct its business as
described in the Prospectus;
(ii) this Agreement has been duly authorized, executed and
delivered by the Company;
(iii) the Indenture has been duly qualified under the Trust
Indenture Act and has been duly authorized, executed and delivered by
the Company and is a valid and binding agreement of the Company,
enforceable in accordance with its terms except as the enforceability
thereof may be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or other laws of general applicability
relating to or affecting creditors' rights or by general equity
principles and subject to the qualification that certain provisions
thereof may be unenforceable in whole or in part under the laws of the
State of Wisconsin, but inclusion of such provisions does not affect
the validity of the Indenture and the Indenture contains legally
adequate provisions for the realization of the principal legal rights
and benefits afforded thereby;
(iv) the Securities have been duly authorized and, when
executed and authenticated in accordance with the provisions of the
Indenture and delivered to and paid for by the Underwriters in
accordance with the terms of this Agreement, will be entitled to the
benefits of the Indenture and will be valid and binding obligations of
the Company, enforceable in accordance with their terms except as the
enforceability thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other laws of
general applicability relating to or affecting creditors' rights or by
general equity principles and subject to the qualification that certain
provisions thereof may be unenforceable in whole or in part under the
laws of the State of Wisconsin, but inclusion of such provisions does
not affect the validity of the Securities and the Securities contain
legally adequate provisions for the realization of the principal legal
rights and benefits afforded thereby;
<PAGE>
(v) The Indenture and the Securities conform in all material
respects to the descriptions thereof in the Prospectus and the
applicable Prospectus Supplement;
(vi) The Registration Statement is effective under the
Securities Act and, to the best of their knowledge and information, no
stop order suspending the effectiveness of the Registration Statement
has been issued under the Securities Act or proceedings therefor
initiated or threatened by the Commission;
(vii) The Registration Statement, at the time it became
effective and as of the date of this Agreement, and the Prospectus, as
of the date thereof, as of the date of this Agreement and as of the
Closing Date, (in each case other than the financial statements and
other financial or statistical information included or incorporated by
reference therein, as to which no opinion need be rendered) complied as
to form in all material respects with the requirements of the
Securities Act, the Trust Indenture Act, and the rules and regulations
thereunder;
(viii) Each document, if any, filed pursuant to the Exchange
Act (other than the financial statements and other financial or
statistical information included therein, as to which no opinion need
be rendered) and incorporated by reference in the Prospectus complied
when so filed as to form in all material respects with the Exchange Act
and the rules and regulations thereunder;
(ix) The Wisconsin Commission has authorized the issue and
sale of the Securities; such authorization, to the best of their
knowledge, is still in full force and effect and no stay with respect
thereto is pending or in effect and such authorization is sufficient
for the issue and sale of the Securities; the issue and sale of the
Securities as described in the Prospectus are in conformity with the
terms of such authorization; and no other consent, approval,
authorization or order of any court or governmental authority or agency
is required in connection with the sale of the Securities to the
Underwriters, except such as may be required under the Securities Act
and state securities laws; and to the best of their knowledge and
information, the execution and delivery of this Agreement and the
consummation of the transactions contemplated herein will not conflict
with or constitute a breach of, or default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company pursuant to, any contract, indenture,
mortgage, loan agreement, note, lease or other instrument known to such
counsel to which the Company is a party or by which it is bound, nor
will such action result in any violation of the provisions of the
charter or by-laws of the Company, or any law, administrative
regulation, or administrative or court decree known to them, other than
in each case such breaches, defaults or violations which individually
or in the aggregate would not result in a material adverse change in
the condition (financial or otherwise), business or results of
operations of the Company;
<PAGE>
(x) after due inquiry, such counsel does not know of any legal
or governmental proceedings pending or threatened to which the Company
is a party or to which any of the properties of the Company is subject
that are required to be described in the Registration Statement or the
Prospectus and are not so described or of any statutes, regulations,
contracts or other documents that are required to be described in the
Registration Statement or the Prospectus or to be filed as exhibits to
the Registration Statement that are not described or filed as required;
and
(xi) the statements (A) in the Prospectus under the captions
"Description of Notes" and "Plan of Distribution" and (B) in the
Registration Statement in Item 15, in each case insofar as such
statements constitute summaries of the legal matters, documents or
proceedings referred to therein, fairly present in all material
respects the information called for with respect to such legal matters,
documents and proceedings and fairly summarize in all material respects
the matters referred to therein.
You shall also have received from such counsel a letter
advising that nothing has come to such counsel's attention that would
lead such counsel to believe that the Registration Statement, at the
time it became effective, or if an amendment to the Registration
Statement or an annual report on Form 10-K has been filed by the
Company with the Commission subsequent to the effectiveness of the
Registration Statement (other than the financial statements and
supporting schedules and other financial or statistical information set
forth therein, as to which no advice is given), then at the time of the
most recent such filing, and as of the date of this Agreement,
contained any untrue statement of a material fact or omitted to state a
material fact required to be stated herein or necessary to make the
statements therein not misleading or that the Prospectus, as amended or
supplemented at the date of this Agreement and at the Closing Time,
contained or contains an untrue statement of a material fact or omitted
or omits to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading.
The opinion of Foley & Lardner described in this paragraph (b)
shall be rendered to the Underwriters at the request of the Company and
shall so state therein.
(c) The Underwriters shall have received on the Closing Date an opinion
of Sidley & Austin, counsel for the Underwriters, dated the Closing Date,
covering the matters referred to in subparagraphs (ii), (iii), (iv), and (x) of
paragraph (b) above and in the unnumbered subparagraph in paragraph (b).
With respect to the unnumbered subparagraph of paragraph (b) above,
Foley & Lardner and Sidley & Austin may state that their opinion and belief are
based upon their participation in the preparation of the Registration Statement
and Prospectus and any amendments or supplements thereto and review and
discussion of the contents thereof, but are without independent check or
verification, except as specified.
<PAGE>
(d) At the Closing Time there shall not have been, since the respective
dates as of which information is given in the Registration Statement, any
material adverse change in the condition, financial or otherwise, of the Company
or in the earnings, business affairs or business prospects of the Company,
whether or not arising in the ordinary course of business, and the Underwriters
shall have received a certificate of the President and Chief Executive Officer
and Chief Financial Officer of the Company, dated as of the Closing Time, to the
effect that there has been no such material adverse change, to the effect that
the representations and warranties of the Company contained in Section 1 are
true and correct with the same force and effect as though made on the Closing
Date, and to the effect that the Company has complied with all of the agreements
and satisfied all of the conditions on its part to be performed or satisfied
hereunder on or before the Closing Date.
(e) The Underwriters shall have received, on each of the date hereof
and the Closing Date, a letter dated the date hereof or the Closing Date, as the
case may be, in form and substance satisfactory to the Underwriters, from Arthur
Anderson LLP, independent public accountants, containing statements and
information of the type ordinarily included in accountants' "comfort letters" to
underwriters with respect to the financial statements and certain financial
information contained in the Registration Statement and the Prospectus.
(f) At the Closing Time, counsel for the Underwriters shall have been
furnished with such documents and opinions as they may reasonably require for
the purpose of enabling them to pass upon the issuance and sale of the
Securities as herein contemplated and related proceedings or in order to
evidence the accuracy and completeness of any of the representations and
warranties, or the fulfillment of any of the conditions, herein contained; and
all proceedings taken by the Company in connection with the issuance and sale of
the Securities as herein contemplated shall be reasonably satisfactory in form
and substance to you.
If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement may be terminated
by you by notice to the Company at any time at or prior to the Closing Time, and
such termination shall be without liability of any party to any other party
except as provided in Sections 7(f) and 9.
6. Covenants of the Company. In further consideration of the agreements
of the Underwriters herein contained, the Company covenants with each
Underwriter as follows:
(a) To deliver to you one signed and as many conformed copies of the
Registration Statement (as originally filed) and of each amendment thereto
(including exhibits filed therewith or incorporated by reference therein and
documents incorporated by reference in the Prospectus) as you may reasonably
request and will also deliver to you a conformed copy of the Registration
Statement and each amendment thereto for each of the Underwriters.
<PAGE>
(b) Before amending or supplementing the Registration Statement or the
Prospectus, whether pursuant to the Exchange Act, the Securities Act or
otherwise, to furnish to you a copy of each such proposed amendment or
supplement and not to file any such proposed amendment or supplement to which
you reasonably object.
(c) If, during such period after the first date of the public offering
of the Securities the Prospectus is required by law to be delivered in
connection with sales by an Underwriter or dealer, any event shall occur or
condition exist as a result of which it is necessary, in the view of your
counsel and counsel for the Company, to amend or supplement the Prospectus in
order to make the statements therein, in the light of the circumstances when the
Prospectus is delivered to a purchaser, not misleading, or if, in the opinion of
both such counsel, it is necessary to amend or supplement the Prospectus to
comply with applicable law, promptly to prepare, file with the Commission and
furnish, at its own expense, to the Underwriters and to the dealers (whose names
and addresses you will furnish to the Company) to which Securities may have been
sold by you on behalf of the Underwriters and to any other dealers upon request,
either amendments or supplements to the Prospectus, whether by filing documents
pursuant to the Exchange Act or otherwise, so that the statements in the
Prospectus as so amended or supplemented will not, in the light of the
circumstances when the Prospectus is delivered to a purchaser, be misleading or
so that the Prospectus, as amended or supplemented, will comply with law.
(d) To notify each of you immediately, and confirm the notice in
writing, (i) of the effectiveness of any amendment to the Registration
Statement, (ii) of the mailing or the delivery to the Commission for filing of
any supplement to the Prospectus or, pending completion of the distribution of
the Securities by the Underwriters pursuant to this Agreement, any document to
be filed pursuant to the Exchange Act and incorporated by reference into the
Prospectus, (iii) of the receipt of any comments from the Commission with
respect to the Registration Statement, the Prospectus or any prospectus
supplement, (iv) of any request by the Commission for any amendment to the
Registration Statement or any amendment or supplement to the Prospectus or for
additional information, and (v) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose. The Company will make every
reasonable effort to prevent the issuance of any stop order and, if any stop
order is issued, to obtain the lifting thereof at the earliest possible moment.
(e) The Company, during the period when the Prospectus is required to
be delivered under the Securities Act, will file promptly all documents required
to be filed with the Commission pursuant to Section 13 or 14 of the Exchange
Act.
(f) To endeavor, in cooperation with you, to qualify the Securities for
offer and sale under the securities or Blue Sky laws of such jurisdictions of
the United States as you shall reasonably request and maintain such
qualifications in effect for as long as may be required for the distribution of
the Securities; provided, however, that the
<PAGE>
Company shall not be required to qualify to do business or to file a general
consent to service of process in any such jurisdiction. The Company will, from
time to time, prepare and file such statements and reports as are or may be
required by the laws of each jurisdiction in which the Securities have been
qualified as above provided.
(g) To make generally available to the Company's security holders and
to you as soon as practicable an earnings statement covering at least a
twelve-month period beginning on the first day of the first full fiscal quarter
after the date of this Agreement that satisfies the provisions of Section 11(a)
of the Securities Act and the rules and regulations of the Commission
thereunder.
(h) During the period beginning on the date hereof and continuing to
and including the Closing Date, not to offer, sell, contract to sell or
otherwise dispose of any debt securities of the Company or warrants to purchase
debt securities of the Company substantially similar to the Securities (other
than (i) the Securities and (ii) commercial paper issued in the ordinary course
of business), without the prior written consent of Morgan Stanley & Co.
Incorporated.
(i) The Company will use the net proceeds received by it from the sale
of the Notes in the manner specified in the Prospectus under "Use of Proceeds."
(j) To pay all expenses incident to the performance of its obligations
under this Agreement, including: (i) the preparation and filing of the
Registration Statement and the Prospectus and all amendments and supplements
thereto; (ii) the preparation, issuance and delivery of the Securities; (iii)
the fees and disbursements of the Company's counsel and accountants and of the
Trustee and its counsel; (iv) the qualification of the Securities under state
securities or Blue Sky laws in accordance with the provisions of Section 6(f),
including filing fees and the reasonable fees and disbursements of counsel for
the Underwriters in connection therewith and in connection with the preparation
of any Blue Sky Memoranda, provided that the fees of such counsel for the Blue
Sky Memorandum shall not exceed $5,000; (v) the printing and delivery to the
Underwriters in quantities as hereinabove stated of copies of the Registration
Statement and all amendments thereto and of each preliminary prospectus and the
Prospectus and any amendments or supplements thereto; (vi) the printing and
delivery to the Underwriters of copies of the Indenture and any Blue Sky
Memoranda; (vii) any fees charged by rating agencies for the rating of the
Securities; and (viii) the costs and fees of any registrar or transfer agent.
7. Indemnity and Contribution. (a) The Company agrees to indemnify and
hold harmless each Underwriter, each of its employees, officers, directors and
agents, and each person, if any, who controls any Underwriter within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act,
from and against any and all losses, claims, damages, liabilities and expenses
(including, without limitation, any legal or other expenses reasonably incurred
by any Underwriter or any such controlling person in connection with defending
or investigating any such action or claim) joint or several, as incurred, caused
by any untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement or any amendment
<PAGE>
thereof, or the Prospectus (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto), or caused by any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, except insofar as
such losses, claims, damages or liabilities are caused by any such untrue
statement or omission or alleged untrue statement or omission based upon
information relating to any Underwriter furnished to the Company in writing by
such Underwriter directly, or through you, expressly for use therein.
(b) Each Underwriter agrees, severally and not jointly, to indemnify
and hold harmless the Company, its directors, its officers who sign the
Registration Statement, each of its employees and agents and each person, if
any, who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, to the same extent as the
foregoing indemnity from the Company to such Underwriter, but only with
reference to information relating to such Underwriter furnished to the Company
in writing by such Underwriter directly, or through you, expressly for use in
the Registration Statement, any preliminary prospectus, the Prospectus or any
amendments or supplements thereto.
(c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to either paragraph (a) or (b) of this Section 7, such person
(the "indemnified party") shall promptly notify the person against whom such
indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and
shall pay the fees and disbursements of such counsel related to such proceeding.
In any such proceeding, any indemnified party shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense
of such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the indemnifying party
shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such fees
and expenses shall be reimbursed as they are incurred. Such firm shall be
designated in writing by Morgan Stanley & Co. Incorporated, in the case of
parties indemnified pursuant to paragraph (a) above and by the Company, in the
case of parties indemnified pursuant to paragraph (b) above. The indemnifying
party shall not be liable for any settlement of any proceeding effected without
its written consent but if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party from and against any loss or liability by reason of such
settlement or judgment. No indemnifying party shall, without the prior written
consent of the indemnified party,
<PAGE>
effect any settlement of any pending or threatened proceeding in respect of
which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party, unless such settlement
includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such proceeding.
(d) To the extent the indemnification provided for in paragraph (a) or
(b) of this Section 7 is unavailable to an indemnified party or insufficient in
respect of any losses, claims, damages, liabilities or expenses referred to
therein, then each indemnifying party under such paragraph, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages, liabilities or expenses (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand and the
Underwriters on the other hand from the offering of the Securities or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company on
the one hand and of the Underwriters on the other hand in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Underwriters
on the other hand in connection with the offering of the Securities shall be
deemed to be in the same respective proportions as the net proceeds from the
offering of the Securities (before deducting expenses) received by the Company
and the total underwriting discounts and commissions received by the
Underwriters, in each case as set forth in the table on the cover of the
Prospectus, bear to the aggregate Public Offering Price of the Securities. The
relative fault of the Company on the one hand and the Underwriters on the other
hand shall be determined by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company
or by the Underwriters and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Underwriters' respective obligations to contribute pursuant to this Section
7 are several in proportion to the respective principal amounts of Securities
they have purchased hereunder, and not joint.
(e) The Company and the Underwriters agree that it would not be just or
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in paragraph (d) of this Section 7. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities or expenses referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7, no Underwriter shall be
required to contribute any amount in excess of the amount by which the
total price at which the
<PAGE>
Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages that such Underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 7 are not exclusive
and shall not limit any rights or remedies which may otherwise be available to
any indemnified party at law or in equity.
(f) The indemnity and contribution provisions contained in this Section
7 and the representations, warranties and other statements of the Company
contained in this Agreement or made by it pursuant to this Agreement shall
remain operative and in full force and effect regardless of (i) any termination
of this Agreement, (ii) any investigation made by or on behalf of any
Underwriter or any person controlling any Underwriter or by or on behalf of the
Company, its officers or directors or any person controlling the Company and
(iii) acceptance of and payment for any of the Securities.
8. Termination. This Agreement shall be subject to termination by
notice given by you to the Company at or prior to the Closing, if (a) after the
execution and delivery of this Agreement and prior to the Closing Date (i)
trading generally shall have been suspended or materially limited on or by, as
the case may be, either the New York Stock Exchange or the American Stock
Exchange, (ii) trading of any securities of the Company shall have been
suspended on any exchange or in any over-the-counter market, (iii) a general
moratorium on commercial banking activities in the United States generally or in
New York shall have been declared by either Federal or New York State
authorities or (iv) there shall have occurred any outbreak or escalation of
hostilities involving the United States or any material and adverse change in
the financial markets, and (b) in the case of any of the events specified in
clauses (a)(i) through (iv), such event, singly or together with any other such
event, makes it, in your judgment, impracticable to market the Securities on the
terms and in the manner contemplated in the Prospectus.
9. Effectiveness; Defaulting Underwriters. This Agreement shall become
effective upon the execution and delivery hereof by the parties hereto.
If, on the Closing Date, any one or more of the Underwriters shall fail
or refuse to purchase Securities that it has or they have agreed to purchase
hereunder on such date, and the aggregate principal amount of Securities which
such defaulting Underwriter or Underwriters agreed but failed or refused to
purchase is not more than one-tenth of the aggregate principal amount of the
Securities to be purchased on such date, the other Underwriters shall be
obligated severally in the proportions that the principal amount of Securities
set forth opposite their respective names in Schedule I bears to the principal
amount of Securities set forth opposite the names of all such non-defaulting
Underwriters, or in such other proportions as you may specify, to purchase the
Securities which such defaulting Underwriter or Underwriters agreed but failed
or refused to purchase on such date. If, on the Closing Date, any Underwriter or
Underwriters shall fail or refuse to purchase Securities and the aggregate
principal
<PAGE>
amount of Securities with respect to which such default occurs is more than
one-tenth of the aggregate principal amount of Securities to be purchased on
such date, and arrangements satisfactory to you and the Company for the purchase
of such Securities are not made within 36 hours after such default, this
Agreement shall terminate without liability on the part of any non-defaulting
Underwriter or the Company. In any such case either you or the Company shall
have the right to postpone the Closing Date, but in no event for longer than
seven days, in order that the required changes, if any, in the Registration
Statement and in the Prospectus or in any other documents or arrangements may be
effected. Any action taken under this paragraph shall not relieve any defaulting
Underwriter from liability in respect of any default of such Underwriter under
this Agreement.
If this Agreement shall be terminated by the Underwriters, or any of
them, because of any failure or refusal on the part of the Company to comply
with the terms or to fulfill any of the conditions of this Agreement, or if for
any reason the Company shall be unable to perform its obligations under this
Agreement, the Company will reimburse the Underwriters or such Underwriters as
have so terminated this Agreement with respect to themselves, severally, for all
out-of-pocket expenses (including the fees and disbursements of their counsel)
reasonably incurred by such Underwriters in connection with this Agreement or
the offering contemplated hereunder.
10. Counterparts. This Agreement may be signed in two or more
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.
11. Applicable Law. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York.
12. Headings. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed a part of
this Agreement.
13. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by
any standard form of telecommunication. Notices to the Underwriters shall be
directed to you c/o Morgan Stanley & Co. Incorporated at 1585 Broadway, New
York, New York, attention Debt Syndicate Department; notices to the Company
shall be directed to it at 626 East Wisconsin Avenue, Milwaukee, Wisconsin
53202, attention of Chief Financial Officer (with a copy addressed to Jay O.
Rothman, Foley & Lardner, 777 East Wisconsin Avenue, Milwaukee, Wisconsin
53202).
14. Parties. This Agreement shall inure to the benefit of and be
binding upon you and the Company, and their respective successors. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to
give any person, firm or corporation, other than the parties hereto or thereto
and their respective successors and the controlling persons and officers and
directors referred to in Section 7 and their heirs
<PAGE>
and legal representatives, any legal or equitable right, remedy or claim under
or in respect of this Agreement or any provision herein contained. This
Agreement and all conditions and provisions hereof are intended to be for the
sole and exclusive benefit of the parties and their respective successors and
said controlling persons and officers and directors and their heirs and legal
representatives, and for the benefit of no other person, firm or corporation. No
purchaser of Securities from any Underwriter shall be deemed to be a successor
by reason merely of such purchase.
<PAGE>
If the foregoing correctly sets forth our understanding, please
indicate the Underwriters' acceptance thereof in the space provided below for
that purpose, whereupon this letter and the Underwriters' acceptance shall
constitute a binding agreement between us.
Very truly yours,
WISCONSIN GAS COMPANY
By /s/Joseph P. Wenzler
Name: Joseph P. Wenzler
Title: Senior Vice President and
Chief Financial Officer
Accepted as of the date hereof
Morgan Stanley & Co. Incorporated
Robert W. Baird & Co. Incorporated
A.G. Edwards & Sons, Inc.
Acting severally on behalf
of themselves and the
several Underwriters named
herein.
By Morgan Stanley & Co.
Incorporated
By /s/Harold J. Hendershot III
Name: Harold J. Hendershot III
Title: Vice President
<PAGE>
SCHEDULE I
Underwriter Principal Amount
of Securities
To Be Purchased
Morgan Stanley & Co. Incorporated $25,000,000
Robert W. Baird & Co. Incorporated 12,500,000
A.G. Edwards & Sons, Inc. 12,500,000
Total $50,000,000
WISCONSIN GAS COMPANY
OFFICERS' CERTIFICATE
Dated as of January 15, 1999
---------------
Setting Forth Terms of an Issue of Unsecured Notes
5 1/2% Notes due 2009
---------------
Pursuant to the Indenture
Dated as of September 1, 1990
<PAGE>
OFFICERS' CERTIFICATE
The undersigned, the Senior Vice President and Chief Financial Officer,
and the Treasurer of Wisconsin Gas Company, a Wisconsin corporation (the
"Company"), hereby certify as provided below pursuant to Section 301 of the
Indenture dated as of September 1, 1990 (the "Indenture") between the Company
and Firstar Bank Milwaukee, N.A. (the "Trustee"). This Officers' Certificate is
delivered, pursuant to authority granted to the undersigned by resolutions
adopted on October 28, 1998 by the Board of Directors of the Company, for the
purpose of creating and setting forth the terms of a series of Notes to be
issued pursuant to the Indenture. Capitalized terms used herein and not
otherwise defined are used as defined in the Indenture.
1. The Board of Directors of the Company has authorized the creation by
the Company of the series of Notes described below pursuant to this Officers'
Certificate and in accordance with the Indenture.
2. The title of the Notes shall be "5 1/2% Notes due 2009" (herein
called the "Notes").
3. The aggregate principal amount of Notes which may be authenticated
and delivered under the Indenture is limited to $50,000,000, except for Notes
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Notes as provided in Sections 304, 305, 306 or 906 of
the Indenture and Notes which, pursuant to Section 303 of the Indenture, are
deemed never to have been authenticated and delivered thereunder.
4. The principal of the Notes (unless the Notes are redeemed earlier as
provided herein) shall be payable on January 15, 2009.
5. The Notes shall bear interest at the rate of 5 1/2% per annum; such
interest shall accrue from January 21, 1999 (or from the most recent Interest
Payment Date to which interest has been paid or provided for); the Interest
Payment Dates on which such interest shall be payable shall be January 15 and
July 15 in each year, commencing July 15, 1999, and the Regular Record Dates for
the determination of Holders to whom interest is payable shall be the January
1st or July 1st next preceding each Interest Payment Date.
6. The principal of and interest on the Notes shall be payable at the
office or agency of the Company in Milwaukee, Wisconsin.
7. Sections 401 and 402 of the Indenture relating to satisfaction,
discharge and defeasance shall apply to the Notes.
8. The Notes shall be redeemable in whole or from time to time in part,
at the option of the Company at any time, at a Redemption Price equal to the
greater of (a) 100% of the principal amount of the Notes to be redeemed or (b)
the sum of the present values of the remaining scheduled payments of principal
and interest thereon (exclusive of interest accrued to the date of redemption)
discounted to the date of redemption on a semi-annual basis
2
<PAGE>
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 10 basis points; plus for each of (a) and (b) above, accrued interest
on the principal amount being redeemed to the date of redemption; provided,
however, that installments of interest on Notes that are due and payable on an
Interest Payment Date falling on or prior to the relevant Redemption Date will
be payable to the Holders of such Notes, registered as such at the close of
business on the relevant record date according to their terms and the provisions
of the Indenture.
9. The terms defined below shall, for all purposes of the Notes under
the Indenture and this Officers' Certificate, have the meanings specified,
unless the context clearly otherwise requires or unless otherwise indicated:
"Treasury Rate" means, with respect to any Redemption Date for the
Notes, (a) the yield, under the heading that represents the average for the
immediately preceding week, appearing in the most recently published statistical
release designated "H.15(519)" or any successor publication that is published
weekly by the Board of Governors of the Federal Reserve System and that
establishes yields on actively traded United States Treasury securities adjusted
to constant maturity under the caption "Treasury Constant Maturities," for the
maturity corresponding to the Comparable Treasury Issue (if no maturity is
within three months before or after the maturity date, yields for the two
published maturities most closely corresponding to the Comparable Treasury Issue
shall be determined and the Treasury Rate shall be interpolated or extrapolated
from such yields on a straight-line basis, rounding to the nearest month) or (b)
if such release (or any successor release) is not published during the week
preceding the calculation date or does not contain such yields, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, calculated using a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such Redemption Date. The Treasury Rate shall be calculated
on the third Business Day preceding the Redemption Date.
"Comparable Treasury Issue" means the United States Treasury security
selected by the Independent Investment Banker as having a maturity comparable to
the remaining term of the Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes.
"Independent Investment Banker" means Morgan Stanley & Co. Incorporated
or, if such firm is unwilling or unable to select the Comparable Treasury Issue,
an independent investment banking institution of national standing appointed by
the Trustee after consultation with the Company.
"Comparable Treasury Price" means, with respect to any Redemption Date,
(a) the average of four Reference Treasury Dealer Quotations for such Redemption
Date after excluding the highest and lowest such Reference Dealer Quotations or
(b) if the Trustee obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations.
"Reference Treasury Dealer" means (1) Morgan Stanley & Co. Incorporated
and its respective successors; provided, however, that if Morgan Stanley & Co.
Incorporated
3
<PAGE>
shall cease to be a primary U.S. Government securities dealer in New York City
(a "Primary Treasury Dealer"), the Company will substitute another Primary
Treasury Dealer, and (2) any three other Primary Treasury Dealers selected by
the Company.
"Reference Treasury Dealer Quotation" means, with respect to the
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.
10. The Notes shall not be subject to any sinking fund and shall not be
repurchasable at the option of a Holder.
11. The Notes shall initially be issued in whole in the form of one or
more Global Notes. The Depository Trust Company, a clearing agency registered
under the Securities Exchange Act of 1934, as amended, shall serve as the
Depositary for such Global Note or Notes. For so long as The Depository Trust
Company shall be the Depository, all Notes shall be registered in its name or in
the name of a nominee thereof. While the Notes are evidenced by one or more
Global Notes, the Depositary or its nominee, as the case may be, shall be the
sole Holder thereof for all purposes under the Indenture. Neither the Company
nor the Trustee shall have any responsibility or obligation to the Depositary's
participants or the beneficial owners for whom they act with respect to their
receipt from the Depositary of payments on the Notes or notices given under the
Indenture. The Global Note or Notes provided for hereunder shall bear the
legends provided for below and such other legend or legends as may be required
from time to time by the Depositary.
12. The form of the Notes shall be substantially as follows:
[Form of 5 1/2% Note due 2009]
[Form of face of Note]
This Note is a Global Note within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary
or a nominee of a Depositary. This Note is exchangeable for Notes
registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture
and may not be transferred except as a whole by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary.
Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation
("DTC"), to Issuer or its agent for registration of transfer, exchange
or payment, and any certificate issued is
4
<PAGE>
registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch
as the registered owner hereof, Cede & Co., has an interest herein.
WISCONSIN GAS COMPANY
5 1/2% Note due 2009
Due January 15, 2009
CUSIP 976707 AM1
No.___________ $___________
WISCONSIN GAS COMPANY, a Wisconsin corporation (hereinafter called the
"Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
____________________, or registered assigns, the sum of _________________
Dollars on January 15, 2009, and to pay interest thereon from January 21, 1999,
or from the most recent Interest Payment Date to which interest has been paid,
semi-annually on January 15 and July 15 in each year commencing July 15, 1999,
at the rate of 5 1/2% per annum until the principal hereof has been paid or duly
provided for in accordance with said Indenture. The interest so payable, and
punctually paid, on any Interest Payment Date will, as provided in said
Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Notes, as defined in said Indenture) is registered at the close of
business on the Regular Record Date (the January 1 or July 1 next preceding each
Interest Payment Date) for such interest. Any such interest not so punctually
paid shall forthwith cease to be payable to the registered Holder on such
Regular Record Date, and may be paid to the Person in whose name this Note (or
one or more Predecessor Notes) is registered at the close of business on a
Special Record Date for the payment of such defaulted interest to be fixed by
the Trustee, notice of which shall be given to Noteholders not less than ten
days prior to such Special Record Date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in said Indenture.
Payment of the principal of and interest on this Note will be made at
the office or agency of the Company in Milwaukee, Wisconsin, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the Note
Register or, at the option of the Holder hereof, to such other place in the
United States of
5
<PAGE>
America as the Holder hereof shall designate to the Trustee in writing or, at
the option of the Holder hereof, by wire transfer in immediately available funds
if such Holder owns Notes of the same series as this Note issued pursuant to the
Indenture which pay interest on the same Interest Payment Date and which are in
the aggregate principal amount of $5,000,000 or more, provided that the Holder
shall bear any and all expenses of any such wire transfer and provided further
that proper written wiring instructions shall have been received by the Trustee
on or prior to the Regular Record Date.
The provisions of this Note are continued on the reverse side hereof
and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place.
Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof, by manual signature of one of its
authorized officers, this Note shall not be entitled to any benefit under the
Indenture, or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this Note to be duly
executed under its corporate seal.
Date:
WISCONSIN GAS COMPANY
By:______________________________
Senior Vice President
Attest:
__________________________
Secretary
[Form of Reverse of Note]
This Note is one of a duly authorized series of Notes of the Company
(herein called the "Notes"), issued and to be issued in one or more series under
an Indenture dated as of September 1, 1990 (herein called the "Indenture"),
between the Company and Firstar Bank Milwaukee, N.A., as Trustee (herein called
the "Trustee", which term includes any successor Trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights thereunder of the Company, the
Trustee and the Persons in whose names the Notes are registered (herein called
the "Holders"), and the terms upon which the Notes are, and are to be,
authenticated and delivered. This Note is one of the notes of the series
designated on the face hereof, limited in aggregate principal amount to
$50,000,000.
6
<PAGE>
This Note is redeemable in whole or from time to time in part, at the
option of the Company at any time, at a Redemption Price equal to the greater of
(a) 100% of the principal amount hereof to be redeemed or (b) the sum of the
present values of the remaining scheduled payments of principal and interest
hereon (exclusive of interest accrued to the date of redemption) discounted to
the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus 10 basis points;
plus for each of (a) and (b) above, accrued interest on the principal amount
being redeemed to the date of redemption; provided, however, that installments
of interest on Notes that are due and payable on an Interest Payment Date
falling on or prior to the relevant redemption date will be payable to the
Holders of such Notes, registered as such at the close of business on the
relevant record date according to their terms and the provisions of the
Indenture. As provided in the Indenture, notice of redemption shall be given to
the registered Holder of this Note by mailing a notice of such redemption at
least 30 but not more than 60 days before the date fixed for redemption, to the
address of such Holder as it appears on the Note Register. If less than all the
Notes are to be redeemed at the option of the Company, the Trustee shall select,
in such manner as it shall deem fair and appropriate, the Notes of such series
to be redeemed in whole or in part. The Indenture contains additional provisions
with respect to any redemption of the Notes.
Notes (or portions thereof) for whose redemption and payment provision
is made in accordance with the Indenture shall cease to bear interest from and
after the date fixed for redemption.
In the event of redemption of this Note in part only, a new Note or
Notes of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.
The Indenture contains provisions for defeasance at any time of the
entire indebtedness on this Note upon compliance by the Company with certain
conditions set forth therein, which provisions apply to this Note.
If an Event of Default with respect to Notes of this series shall occur
and be continuing, the principal of the Notes of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligation of the
Company and the rights of the Holders of each series to be affected under the
Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in principal amount of the Notes at the time Outstanding
of each series to be affected. The Indenture also contains provisions permitting
the Holders of a majority in principal amount of the Notes of each series at the
time Outstanding, on behalf of the Holders of all Notes of such series, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent or waiver is made upon this Note.
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<PAGE>
No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal and interest on this Note at
the times, place and rate, and in coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein
set forth, this Note is transferable on the Note Register of the Company, upon
surrender of this Note for registration of transfer at the office or agency of
the Company in any place where the principal of and interest on this Note are
payable, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Note Registrar duly executed by, the
registered Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.
The Notes are issuable only as registered Notes without coupons and
only in denominations of $1,000 or any integral multiple of $1,000. As provided
in the Indenture and subject to certain limitations therein set forth, Notes of
this series are exchangeable for a like aggregate principal amount of Notes of
this series and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
The Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment as herein provided and for all other
purposes whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
All terms used in this Note which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
[Form of Certificate of Authentication]
This is one of the Notes of the series designated in the
within-mentioned Indenture and referred to therein.
Firstar Bank Milwaukee, N.A.,
as Trustee
By_________________________________
Authorized Officer
* * * *
8
<PAGE>
IN WITNESS WHEREOF, we have set our hands and the corporate seal of the
Company as of the day and year first above written.
/s/Joseph P. Wenzler
Joseph P. Wenzler
Senior Vice President and Chief
Financial Officer
(CORPORATE SEAL) /s/James J. Monnat
James J. Monnat
Treasurer
9
