NextEra Energy is planning to sell $700m equity units, with each equity unit to be issued in a stated amount of $50.
Each equity unit will consist of a contract to purchase NextEra Energy common stock in the future, and a 5 percent undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc. debenture due Sept. 1, 2020, to be issued in the principal amount of $1,000. The debentures will be guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy, Inc.
The holders would be required to complete the stock purchase by no later than Sept. 1, 2018, and their purchase obligations may be satisfied with proceeds raised from remarketing the debentures that comprise part of their equity units.
The net proceeds from the sale of the equity units, which are expected to be approximately $692 million (after deducting the underwriting discount and other offering expenses), will be added to the general funds of NextEra Energy Capital Holdings. NextEra Energy Capital Holdings expects to use its general funds to fund investments in energy and power projects, including renewable power projects, and investments in NextEra Energy Partners, LP’s (NYSE: NEP) subsidiary, NextEra Energy Operating Partners, LP.