NextEra Energy To Sell $700 Mln Of Equity Units - Quick Facts

(RTTNews) - NextEra Energy Inc. (NEE) said Friday that it has agreed to sell $700 million of equity units to Barclays, Mizuho Securities, and Wells Fargo Securities. The transaction is expected to close on September 16, 2015.

Each equity unit will 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 September 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. Total annual distributions on the equity units will be at the rate of 6.371 percent, consisting of interest on the debentures and payments under the stock purchase contracts.

Each stock purchase contract will require the holder to purchase NextEra Energy common stock for cash, based on a per-share price range of $95.35 to $114.42. The higher end of this price range reflects a premium of 20 percent over the New York Stock Exchange closing price of NextEra Energy common stock on September 10, 2015, which was $95.35. The holders must complete the stock purchase by no later than September 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 $693 million , after deducting the underwriting discount, 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 (NEP) subsidiary, NextEra Energy Operating Partners, LP.