By Marisa Wong and Cristal Cody
Los Angeles, Dec. 9 – NextEra Energy Capital Holdings Inc. priced $600 million of 3.8% series P junior subordinated debentures due March 15, 2082 (Baa2/BBB/BBB) at par on Thursday, according to a 424B5 filing with the Securities and Exchange Commission.
Price talk was in the 4.375% area, according to a market source.
The debentures are guaranteed by parent company NextEra Energy, Inc.
The interest rate will reset on March 15, 2027 to a rate equal to five-year Treasuries plus 254.7 basis points.
Interest payments may be deferred for up to 10 consecutive years per deferral.
The debentures will be callable in whole or in part at par on March 15, 2027 or any interest payment date after that. The debentures will also be callable in whole or in part at 102 if a rating agency event occurs.
The bookrunners are Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC.
The company will add the net proceeds from the sale to its general funds, which may then be used to repay short-term borrowings, to repurchase outstanding debt and for other general corporate purposes, according to a previous 424B5 filing with the Securities and Exchange Commission.
The issuer does not intend to apply to list the debentures on any securities exchange.
NextEra Energy is an energy company based in Juno Beach, Fla.
| Issuer: | NextEra Energy Capital Holdings Inc.
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| Amount: | $600 million
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| Issue: | Series P junior subordinated debentures
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| Maturity: | March 15, 2082
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| Bookrunners: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC
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| Co-managers: | Academy Securities, Inc., DZ Financial Markets LLC, HSBC Securities (USA) Inc. and WR Securities, LLC
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| Coupon: | 3.8%; resets on March 15, 2027 to five-year Treasuries plus 254.7 bps
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| Price: | Par
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| Spread: | 254.7 bps over Treasuries
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| Call option: | In whole or in part at par on March 15, 2027 or any interest payment date after that; in whole or in part at 102 if a rating agency event occurs
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| Pricing date: | Dec. 9
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| Settlement date: | Dec. 14
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| Expected ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Price talk: | 4.375% area
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| Cusip: | 65339KCB4
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