By Rebecca Melvin
New York, Sept. 11 – NextEra Energy Inc. sold $700 million of three-year mandatory convertible equity units at $50 par in a registered, overnight deal via joint bookrunners Barclays, Mizuho Securities USA Inc. and Wells Fargo Securities LLC, according to a company news release.
The units have a distribution rate of 6.371% and a premium of 20%, which was the same as the talked pricing at deal launch.
The equity units consist of a contract to purchase NextEra Energy common stock and a 5% beneficial ownership interest in a NextEra Energy Capital Holdings Inc. debenture due Sept. 1, 2020. The debentures will be guaranteed by NextEra Energy Holdings’ parent company, NextEra Energy Inc.
Proceeds will be added to the general funds of NextEra Energy Capital Holdings for use in energy and power project investments, including renewable power projects.
The purchase contract obligates holders to purchase from NextEra a certain number of shares no later than Sept. 1, 2018.
Based in Juno Beach, Fla., NextEra is power generation and transmission company.
Issuer: | NextEra Energy Inc.
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Issue: | Mandatory convertible equity units
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Amount: | $700 million
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Maturity: | Sept. 1, 2018
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Bookrunners: | Barclays, Mizuho Securities USA Inc., Wells Fargo Securities LLC
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Distribution rate: | 6.371%
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Price: | $50.00 par
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Premium: | 20%
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Threshold appreciation price: | $95.35 to $114.42
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Pricing date: | Sept. 10
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Settlement date: | Sept. 16
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Stock symbol: | NYSE: NEE
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Stock reference price: | $95.35 as of close Sept. 10
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Market capitalization: | $42.95 billion
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Distribution: | Registered, off the shelf
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Price talk: | 6.371% coupon, up 20%
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