By Abigail W. Adams
Portland, Me., Sept. 15 – NextEra Energy Inc. priced $2 billion of three-year $50-par equity units after the market close on Wednesday with a fixed coupon of 6.926%, a fixed threshold appreciation premium of 25% and a reoffer price of $48.75, according to a company news release and a market source.
Pricing came in line with talk for a fixed coupon of 6.926%, a fixed conversion premium of 25% and at the cheap end of talk for a reoffer price of $48.75 to $49.25, or 97.5% to 98.5% of par.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. were bookrunners for the registered offering, which does not carry a greenshoe.
The equity units consist of a forward stock purchase agreement, which expires on Sept. 1, 2025, and a 5% interest in a $1,000-par NextEra Energy Capital Holdings Inc. debenture due Sept. 1, 2027.
There is takeover and dividend protection above 42.5 cents per quarter.
Proceeds will be used to fund investments in clean energy and power projects, to repay debt and for other general corporate purposes.
NextEra is a Juno Beach, Fla.-based clean energy company.
| Issuer: | NextEra Energy Inc.
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| Amount: | $2 billion
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| Issue: | Equity units
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| Maturity: | Sept. 1, 2025
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Mizuho Securities USA Inc.
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| Coupon: | 6.926%
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| Price: | $48.75
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| Par: | $50
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| Appreciation premium: | 25%
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| Appreciation price: | $111.10
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| Settlement rate: | Minimum of 0.45 shares; maximum of 0.5626 shares
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 19
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| Distribution: | Registered
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| Talk: | Fixed coupon of 6.926%, a fixed conversion premium of 25% and a reoffer price of 97.5 to 98.5
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| Stock symbol: | NYSE: NEE
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| Stock price: | $88.88
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| Market capitalization: | $174.63 billion
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