NextEra Energy subsidiary enters into $400 million term loan agreement

By Jennifer Chiou

New York, July 24 – NextEra Energy Capital Holdings Inc. indirect subsidiary FPL FiberNet, LLC entered into a $400 million limited-recourse senior secured variable rate term loan agreement, according to an 8-K filed with the Securities and Exchange Commission.

The loan comes due in July 2019.

Under the terms of the agreement, FPL FiberNet may borrow up to an additional $150 million if certain conditions are satisfied, including, among other things, sufficient lender commitments and the satisfaction of a specified maximum leverage ratio at the time of any borrowing, the filing stated.

The company is required to hedge against interest rate movements with respect to interest payments on at least 40% of the principal amount of the term loan during the first three years of the loan.

Proceeds were used primarily to fund a distribution to NextEra Energy as reimbursement for a portion of its capital contributions used by FPL FiberNet in the development of its fiber-optic communications network and for general corporate purposes.

Based in Juno Beach, Fla., NextEra is power generation and transmission company.

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