Summary
This 8-K filing from NextEra Energy, Inc. (NEE) on September 20, 2010, details two significant financing activities undertaken by its subsidiaries. First, FPL Group Capital Inc. issued 10 billion Japanese Yen in Senior Notes, equivalent to approximately $120 million USD, with a maturity in 2030. NextEra Energy is guaranteeing these notes, and FPL Group Capital has hedged currency exposure through a swap. The proceeds are earmarked for general corporate purposes. Second, NextEra Energy successfully sold $402.5 million of equity units, including an over-allotment, to Credit Suisse Securities. Each unit comprises a stock purchase contract and a beneficial interest in a Series D Debenture issued by FPL Group Capital. These debentures, guaranteed by NextEra Energy, are due in 2015. The equity units offer a 7% annual distribution and require holders to purchase NextEra Energy common stock by September 2013, with flexibility in how they can meet this obligation, including remarketing the debentures.
Key Highlights
- 1FPL Group Capital Inc., a subsidiary of NextEra Energy, issued 10 billion Japanese Yen (approx. $120 million USD) in 2.625% Guaranteed Senior Notes due 2030.
- 2NextEra Energy, Inc. provided a full guarantee for the aforementioned Senior Notes.
- 3FPL Group Capital implemented a currency swap to mitigate foreign exchange risk on the Yen-denominated notes.
- 4NextEra Energy sold $402.5 million of equity units on September 21, 2010.
- 5Each equity unit contains a stock purchase contract and a beneficial interest in a FPL Group Capital Series D Debenture due 2015.
- 6The debentures are fully and unconditionally guaranteed by NextEra Energy.
- 7The equity units offer a 7% annual distribution and include a commitment for holders to purchase NextEra Energy common stock by September 2013.