NextEra, Vistra among top power sector issuers in Q4'21

U.S. electric utilities and power producers issued about $23.28 billion of securities during the fourth quarter of 2021, down from the $25.69 billion in the fourth quarter of 2020, according to data from S&P Global Market Intelligence.

The total includes $17.32 billion of senior debt, $2.75 billion of preferred equity, $2.03 billion of subordinated debt and $1.18 billion of common equity.

Largest issuers in power sector in fourth quarter 2021

NextEra Energy Capital Holdings Inc. was the largest issuer during the fourth quarter, with $3.80 billion of senior debt securities sold. The NextEra Energy Inc. subsidiary issued $1.3 billion of floating-rate debentures due Nov. 3, 2023, $1 billion of 1.875% debentures due Jan. 15, 2027, $1 billion of 2.44% debentures due Jan. 15, 2032, and $500 million of 3% debentures due Jan. 15, 2052. The transactions helped repay some of the company's outstanding commercial paper obligations; and fund a portion of the redemption price for seven series of its senior debentures, which mature from 2022 to 2026, and a series of its junior subordinated debentures, which mature in 2076.

NextEra Energy Capital was followed by Vistra Corp., which sold $2 billion of preferred equity in two transactions. The company sold $1 billion of its 8% series A fixed-rate reset cumulative redeemable perpetual preferred stock and $1 billion of its 7% series B fixed-rate reset cumulative redeemable green perpetual preferred stock to repurchase common stock and pay for or reimburse the payment of existing and new eligible green projects in the U.S.

Pacific Gas and Electric Co. issued $1.45 billion of senior debt securities comprised of $900 million of 1.70% first mortgage bonds due Nov. 15, 2023, and $550 million of 3.25% first mortgage bonds due June 1, 2031, to repay $1.45 billion of first mortgage bonds due Nov. 15, 2021, with the remainder to be used for general corporate purposes.

Other notable issuance in the quarter included Public Service Enterprise Group Inc.'s sale of $750 million of 0.841% senior notes due Nov. 8, 2023, and $750 million of 2.45% senior notes due Nov. 15, 2031; NextEra Energy subsidiary Florida Power & Light Co.'s issuance of $1.2 billion of 2.875% first mortgage bonds due Dec. 4, 2051; and Duke Energy Corp. subsidiary Duke Energy Florida LLC's issuance of $650 million of 2.40% first mortgage bonds due Dec. 15, 2031, and $500 million of 3% first mortgage bonds due Dec. 15, 2051.

The list of top 10 power sector issuers in the fourth quarter also included Dominion Energy Inc. subsidiary Virginia Electric and Power Co., Sempra and FirstEnergy Corp.