What is the purpose of this $322.5 million loan?

The loan is specifically to fund the development and construction of 309 megawatts of wind generation facilities and associated transmission infrastructure located in North Dakota and Iowa.

Who is responsible for repaying this loan?

The loan is for Heartland Wind, LLC, an indirect wholly-owned subsidiary of NEE. It is a limited-recourse loan, meaning repayment is primarily tied to the success and cash flows of the project assets themselves, rather than being a full corporate guarantee from the parent company.

What are the key terms of the loan, such as maturity and interest?

The loan matures in December 2016. Interest is paid quarterly, and the principal is partially amortizing with a significant balloon payment of approximately $111.4 million due at maturity.

Does this loan add significant debt to NextEra Energy's overall balance sheet?

While it adds debt, it is project-specific and limited-recourse, secured by the assets being built. This type of financing is common for large infrastructure projects and allows for the separation of project-level risk from the broader corporate balance sheet.

NEXTERA ENERGY INC 8-K: Financial Events

Summary

This 8-K filing by NextEra Energy Inc. (NEE), then operating as FPL Group, Inc., announces a significant debt financing event for its subsidiary, Heartland Wind, LLC. On December 19, 2008, Heartland Wind entered into a $322.5 million limited-recourse senior secured term loan agreement, with the full amount borrowed on December 22, 2008. This financing is crucial as it will fund the development and construction of 309 megawatts of wind generation and associated transmission facilities in North Dakota and Iowa. The loan, which matures in December 2016, is secured by the project assets and has provisions for potential increase up to $400 million.

Key Highlights

1Heartland Wind, LLC, an indirect subsidiary of NEE, secured a $322.5 million senior secured term loan.
2The loan proceeds will finance the development and construction of 309 MW of wind generation and associated transmission facilities.
3The project assets are located in North Dakota and Iowa.
4The loan is limited-recourse and senior secured, backed by liens on the project assets.
5The loan matures in December 2016, with partial amortization and a balloon payment.
6The facility has the potential to be increased up to $400 million under certain conditions by March 31, 2009.
7This financing indicates continued investment in renewable energy assets by NEE during a challenging economic period.

NEXTERA ENERGY INC 8-K Report, Financial Obligation (Dec 22, 2008)

Summary

Key Highlights

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