NextEra Energy Inc. on Sept. 9 completed the sale of $1.5 billion of equity units in a stated amount of $50 apiece to Barclays Capital Inc., Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC.
Each equity unit consists of a contract to purchase NextEra common stock in the future and a 5% undivided beneficial ownership interest in a NextEra Energy Capital Holding series J debenture due Sept. 1, 2024. The debentures were issued in the principal amount of $1,000 and are guaranteed by NextEra Energy.
The holders will be required to complete the stock purchase by Sept. 1, 2022, based on a price per share of $224.12 to $280.15, and their purchase obligations may be satisfied with proceeds raised from remarketing the debentures that comprise part of their equity units.
Total annual distributions on the equity units will be at a rate of 4.872%, consisting of interest on the debentures and payments under the stock purchase contracts.
Net proceeds of about $1.45 billion will be added to the general funds of NextEra Energy Capital, which plans to use the funds for investments in energy and power projects and to repay all or a portion of its outstanding commercial paper obligations, among other general corporate purposes.
