Summary
This 8-K filing from NextEra Energy Inc. (formerly FPL Group, Inc.) on December 19, 2008, details several significant financing activities undertaken by its subsidiaries. Primarily, FPL Group Capital Inc. secured two term loans: one for 12.5 billion Japanese Yen (approximately $141.4 million at the time of borrowing) with a potential to increase to 30 billion Yen, and another for $50 million. Both loans mature in December 2011 and are guaranteed by FPL Group, with proceeds intended for general corporate purposes. These transactions highlight the company's proactive approach to managing its capital structure and liquidity during a challenging economic period.
Key Highlights
- 1FPL Group Capital Inc. borrowed 12.5 billion Japanese Yen (approx. $141.4 million) under a term loan agreement, which can be increased up to 30 billion Yen.
- 2The 12.5 billion Yen loan matures in December 2011 and has been hedged against currency fluctuations via a cross-currency basis swap.
- 3FPL Group Capital Inc. also entered into and borrowed $50 million under a separate term loan agreement, also maturing in December 2011.
- 4Both FPL Group Capital Inc. term loans are guaranteed by the parent company, FPL Group.
- 5Legacy Renewables, LLC issued $202 million in 7.5% limited-recourse senior secured notes due December 2013.
- 6The proceeds from the Legacy Renewables notes will fund wind power generation assets in California, Pennsylvania, and Texas.
- 7The notes issued by Legacy Renewables are secured by liens on the wind power generation assets and related collateral.