NextEra Energy talks $2 billion $50-par equity units at $48.75-$49 with a coupon of 6.219%, up 25%

By Abigail W. Adams

Portland, Me., Sept. 15 – NextEra Energy Inc. plans to price $2 billion of three-year $50-par equity units after the market close on Tuesday with price talk for a reoffer price of $48.75 to $49.00 a fixed dividend of 6.219% and a fixed threshold appreciation premium of 25%, according to a market source.

Barclays and BofA Securities Inc. are joint bookrunners for the registered offering.

The units consist of a common stock purchase contract and a 5% beneficial ownership interest in a $1,000-par NextEra Energy Capital Holdings Inc. debenture due Sept. 1, 2025.

Net proceeds are expected to be $1.94 billion.

There is dividend protection above $1.40 per quarter and takeover protection.

Proceeds will be used for general corporate purposes, including to fund investments in energy and power projects and to potentially redeem a portion of the company’s outstanding junior subordinated debentures, according to a company news release.

NextEra Energy is a Juno Beach, Fla.-based clean energy company.

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