Summary
NextEra Energy Inc. (NEE) filed an 8-K report on April 19, 2010, primarily disclosing two significant financing events. FPL Group Capital Inc., a subsidiary, entered into a $100 million term loan due in April 2013, with FPL Group, Inc. providing a guarantee. This facility will be used for general corporate purposes and carries variable interest rates. The loan agreement includes covenants and default provisions tied to FPL Group's financial health and operational compliance. Additionally, Central States Wind, LLC, an indirect subsidiary, secured a $255 million limited-recourse senior secured term loan maturing in January 2027. This loan's proceeds were utilized to partially fund the acquisition of approximately 185 megawatts of wind generation facilities across South Dakota, Wisconsin, and Texas. The loan bears interest based on LIBOR plus a margin and features interest rate swaps for hedging. It is secured by the acquired wind generation assets and other related collateral, with default triggers including payment failures, covenant breaches, and bankruptcy events.
Key Highlights
- 1FPL Group Capital Inc., a subsidiary of NEE, secured a $100 million term loan maturing in April 2013.
- 2FPL Group, Inc. provided a guarantee for the $100 million term loan.
- 3Proceeds from the $100 million loan are designated for general corporate purposes.
- 4Central States Wind, LLC, an indirect subsidiary, obtained approximately $255 million in a senior secured term loan due January 2027.
- 5The $255 million loan financed the acquisition of 185 megawatts of wind generation facilities in South Dakota, Wisconsin, and Texas.
- 6The $255 million loan is limited-recourse and secured by the acquired wind assets and related entities.
- 7Central States Wind entered into interest rate swaps to hedge against variable interest rate exposure on its $255 million loan.