Summary
NextEra Energy Inc. (NEE) announced through its indirect wholly-owned subsidiary, Heartland Wind II, LLC, the execution of a significant financing agreement on May 18, 2009. This $343 million limited-recourse senior secured variable rate term loan will fund the development and construction of 298.5 megawatts of wind generation facilities and associated transmission infrastructure in North Dakota and Iowa. The loan, set to mature in May 2017, features quarterly interest payments and partial principal amortization, with a balloon payment at maturity. The structure is designed to be non-recourse to the parent company beyond the pledged assets.
Key Highlights
- 1Heartland Wind II, LLC, an indirect subsidiary of NextEra Energy Resources, secured a $343 million term loan.
- 2The loan is limited-recourse and senior secured, indicating a specific pool of assets backing the debt.
- 3Proceeds will fund the development and construction of 298.5 MW of wind generation and transmission facilities.
- 4The project is located in North Dakota and Iowa, diversifying NextEra's renewable energy footprint.
- 5The loan has a maturity date of May 2017, with partial amortization and a balloon payment.
- 6Interest is payable quarterly on the variable rate loan.
- 7The loan agreement includes standard default and covenant provisions.