1. Home
  2. Business
  3. &
  4. Finance
  5. NextEra Energy announces sale of equity units
NextEra Energy announces sale of equity units

NextEra Energy announces sale of equity units


NextEra Energy, Inc. announced recently that it has agreed to 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. Each equity unit will be issued in a stated amount of $50. Each equity unit will consist of a contract to purchase NextEra Energy common stock in the future and a 5 percent undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc. debenture due Sept. 1, 2021, to be issued in the principal amount of $1,000. 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.

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. The offering may be made only by means of a prospectus and the related prospectus supplement, copies of which may be obtained from Goldman, Sachs & Co., 200 West Street, New York, New York 10282, Attention: Prospectus Department, or by calling 1-866-471-2526 or by emailing prospectus-ny@ny.email.gs.com.

Source: PRNews
Anand Gupta Editor - EQ Int'l Media Network


Your email address will not be published. Required fields are marked *