NextEra Energy Partners talks $600 million 0% convertibles due 2025 at 99-99.5, up 20%

By Abigail W. Adams

Portland, Me., Nov. 30 – NextEra Energy Partners LP plans to price $600 million of five-year convertible notes after the market close on Monday with price talk for a fixed coupon of 0%, a fixed initial conversion premium of 20% and a reoffer price of 99 to 99.5, according to a market source.

Goldman Sachs & Co. LLC is the bookrunner for the Rule 144A offering, which does not carry a greenshoe.

The notes are non-callable. There is dividend protection above $0.595.

The notes will be settled in cash, common units or a combination of cash and common units.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and redeem a portion of its 4.25% convertible notes due 2024.

NextEra Energy Partners is a Juno Beach, Fla.-based limited partnership formed by NextEra Energy to acquire and manage clean energy projects.

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