Summary
NextEra Energy Inc. (NEE), through its wholly-owned subsidiary Florida Power & Light Company (FPL), announced a new $500 million, three-year bank revolving credit agreement on May 4, 2010. This facility, maturing in May 2013, provides FPL with significant financial flexibility by allowing for loans and the issuance of letters of credit up to the $500 million aggregate limit. The funds are earmarked for general corporate purposes, including crucial support for FPL's commercial paper program and as a back-up liquidity source in case of disruptions to its operating facilities.
Key Highlights
- 1FPL secured a $500 million, three-year bank revolving credit agreement.
- 2The credit facility expires in May 2013.
- 3The agreement allows for borrowings and letters of credit up to an aggregate of $500 million.
- 4Funds can be used for general corporate purposes.
- 5The credit facility is intended to provide back-up liquidity for FPL's commercial paper program.
- 6It also serves as a contingency for operational disruptions to FPL's facilities.
- 7FPL must maintain a specific funded debt to total capitalization ratio to access the credit line.