NextEra Energy Sells $2.5 Bn in Equity Units to JP Morgan, Wells Fargo and BofA

NextEra Energy has announced that it has agreed to sell USD 2.5 billion of equity units to JP Morgan, Wells Fargo Securities, and BofA Securities.

NextEra Energy, Inc has announced that it has agreed to sell USD 2.5 billion of equity units to J.P. Morgan, Wells Fargo Securities, and BofA Securities. The transaction is expected to close on February 21, 2020.

Each equity unit will be issued in a stated amount of USD 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 debenture due March 1, 2025, to be issued in the principal amount of USD 1,000. The debentures will be guaranteed by NextEra Energy Capital Holdings’ parent company, NextEra Energy. Total annual distributions on the equity units will be at the rate of 5.279 percent, consisting of interest on the debentures and payments under the stock purchase contracts.

The net proceeds from the sale of the equity units, which are expected to be approximately USD 2.42 billion (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 and for other general corporate purposes, including the repayment of all or a portion of NextEra Energy Capital Holdings’ outstanding commercial paper obligations.

In July 2019, Western Farmers Electric Cooperative (WFEC) has announced that it has entered into a power purchase agreement (PPA) with a subsidiary of NextEra Energy Resources, for the largest combined wind, solar and energy storage project in the US.

In December 2019, NextEra Energy Resources, via its subsidiary and Entergy Arkansas had announced the start of construction of the largest utility-scale solar energy project in Arkansas – the Chicot Solar Energy Center. The project, when complete, will be bigger than the Stuttgart Solar Energy Center, which came online in 2018 as the state’s largest universal solar energy project at that time.