Nextera Energy to sell $1.5 billion equity units to banksStaff Writer | August 4, 2016
NextEra Energy will sell $1.50 billion of equity units to Goldman, Sachs & Co., Credit Suisse and Mizuho Securities. The transaction is expected to close on Aug. 8, 2016.
Acquisition Nextera to finance the potential acquisition
The debentures will be guaranteed by NextEra Energy Capital Holdings' parent company, NextEra Energy, Inc. Total annual distributions on the equity units will be at the rate of 6.123 percent, consisting of interest on the debentures and payments under the stock purchase contracts.
Each stock purchase contract will require the holder to purchase NextEra Energy common stock for cash, based on a per-share price range of $127.63 to $159.54.
The higher end of this price range reflects a premium of 25 percent over the New York Stock Exchange closing price of NextEra Energy common stock on Aug. 2, 2016, which was $127.63.
The holders must complete the stock purchase by no later than Sept. 1, 2019, and their purchase obligations may be satisfied with proceeds raised from remarketing the debentures that comprise part of their equity units.
The net proceeds from the sale of the equity units, which are expected to be $1.45 billion (after deducting the underwriting discount and other offering expenses), will be added to the general funds of NextEra Energy Capital Holdings.
NextEra Energy Capital Holdings expects to use its general funds to finance the potential acquisition of Energy Future Holdings Corp., to fund investments in energy and power projects and for other general corporate purposes, including the repayment of a portion of NEE Capital's outstanding commercial paper obligations and other indebtedness. ■