NextEra Energy Announces Offering of $900M in Aggregate Principal Amount of Senior Notes due 2027

Source: www.gulfoilandgas.com 2/27/2024, Location: North America

NextEra Energy Capital Holdings, Inc., a subsidiary of NextEra Energy, Inc. (NYSE: NEE), today announced an offering of $900 million in aggregate principal amount of its exchangeable senior notes due 2027 (the "notes") in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In addition, NextEra Energy Capital Holdings intends to grant the initial purchasers the option to purchase up to an additional $100 million aggregate principal amount of the notes within a 13-day period beginning on, and including, the date on which the notes are first issued.

The notes will accrue interest payable semi-annually in arrears and will mature on March 1, 2027, unless earlier purchased by NextEra Energy Capital Holdings or exchanged. Holders may exchange all or a portion of their notes at any time prior to their maturity date in principal amounts equal to $1,000 or an integral multiple thereof. Upon exchange, NextEra Energy Capital Holdings will pay cash up to the aggregate principal amount of the notes to be exchanged and has the right, at its sole discretion, to pay or deliver cash, shares of NextEra Energy common stock or a combination of both to settle any remaining obligation in excess of the aggregate principal amount of the notes being exchanged. At this time, NextEra Energy Capital Holdings expects to settle any remaining obligation in cash. The notes will be unconditionally and irrevocably guaranteed on a senior unsecured basis by NextEra Energy.

NextEra Energy intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below. NextEra Energy Capital Holdings will add the remainder of the net proceeds to its general funds and expects to use its general funds to fund investments in energy and power projects and for other general corporate purposes, including the repayment of a portion of its outstanding commercial paper obligations.

In connection with the offering of the notes, NextEra Energy intends to enter into one or more privately negotiated capped call transactions with one or more of the initial purchasers of the notes or their respective affiliates and/or certain other financial institutions (the "hedge counterparties"). The capped call transactions may be settled with cash or, at NextEra Energy's election, with shares of NextEra Energy common stock. At this time, NextEra Energy expects to settle the capped call transactions in cash. Any capped call settlement value is expected to offset the value to be delivered upon exchange of the notes (as applicable) as a result of share price improvement up to approximately 50% over the closing sale price of NextEra Energy common stock on the date the notes offering is priced, which will be subject to certain adjustments under the terms of the capped call transactions.

The offer and sale of the notes, the guarantee and the shares of NextEra Energy common stock, if any, deliverable upon exchange of the notes, if any, have not been registered under the Securities Act, or the securities laws of any other jurisdiction. Accordingly, the notes are being offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act. The notes, the guarantee and NextEra Energy common stock deliverable upon exchange of the notes are not transferable absent registration or an applicable exemption from the registration requirements of the Securities Act. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction.


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