NextEra Energy Capital Holdings Inc. sold $150 million of its floating-rate debentures due Sept. 28, 2020, according to a March 25 free writing prospectus.
The NextEra Energy Inc. subsidiary plans to add the net proceeds to its general funds and use those funds for general corporate purposes, including potentially repaying a portion of borrowings under four separate term-loan agreements and repaying a portion of its outstanding commercial paper obligations.
NextEra Energy Capital had $4.5 billion outstanding under the loan agreements and about $1.65 billion outstanding under its commercial paper obligations as of March 21. The company will temporarily invest in short-term instruments any proceeds it does not immediately use for those purposes.
Interest on the debentures is payable quarterly at a rate equal to three-month London interbank offered rate plus 0.45%. The interest rate will be reset quarterly on the 28th of March, June, September and December each year, starting June 28.
The issue was expected to be rated Baa1 by Moody's and BBB+ by S&P Global Ratings. The transaction is expected to settle March 27.
RBC Capital Markets LLC acted as the sole book-running manager.