By Stephanie N. Rotondo
Seattle, Aug. 3 – NextEra Energy Inc. priced $1.5 billion of 6.123% three-year mandatory convertible equity units on Wednesday, the company said in a press release.
The units will have a par value of $50.00 but were priced at $48.875. Each unit will 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, 2021. The debentures will be guaranteed by the parent company.
Each stock contract is based on a per share price range of $127.63 to $159.54. At the higher end, the price represents a 25% premium over Tuesday’s closing share price.
Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and Mizuho Securities are the joint bookrunners.
Proceeds will be added to the general funds of NextEra Energy Capital Holdings, which expects to use its general funds to finance the potential acquisition of Energy Future Holdings Corp., to fund investments in energy and power projects and for other general corporate purposes, including the repayment of a portion of outstanding commercial paper obligations and other debt.
| Issuer: | NextEra Energy Inc.
|
| Securities: | Mandatory convertible equity units
|
| Amount: | $1.5 billion
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| Maturity: | Sept. 1, 2019
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| Bookrunners: | Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, Mizuho Securities
|
| Distribution rate: | 6.123%
|
| Price: | $48.875
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| Liquidation preference: | $50.00
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| Premium: | 25%
|
| Threshold appreciation price: | $127.63 to $159.54
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| Pricing date: | Aug. 3
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| Settlement date: | Aug. 8
|
| Stock symbol: | NYSE: NEE
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| Stock reference price: | $127.63 as of close Aug. 2
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