Summary
This 8-K filing reports a significant financing event for NextEra Energy, Inc. (NEE) through its subsidiary Wild Prairie Wind, LLC. On September 29, 2010, Wild Prairie Wind secured approximately $297 million in a limited-recourse senior secured term loan. These funds were primarily used to reimburse NextEra Energy Resources for capital contributions towards the development and construction of two wind generation facilities totaling 249 megawatts in South Dakota and Iowa. The loan carries a variable interest rate based on LIBOR plus a margin, with principal and interest payments structured semi-annually and quarterly, respectively. The debt matures in September 2028. Notably, Wild Prairie Wind has entered into interest rate swaps to hedge against potential increases in interest rates, mitigating financial risk associated with the variable rate. The loan is secured by the wind generation facilities and related assets.
Key Highlights
- 1Wild Prairie Wind, LLC, an indirect wholly-owned subsidiary of NextEra Energy, Inc., secured a $297 million senior secured variable rate term loan.
- 2Loan proceeds will primarily reimburse capital contributions for two wind generation facilities totaling 249 megawatts.
- 3The facilities are located in South Dakota and Iowa.
- 4The loan matures in September 2028.
- 5Interest is variable, based on LIBOR plus a specified margin.
- 6The loan is secured by the wind generation facilities and related assets.
- 7Interest rate swaps have been implemented to hedge against interest rate fluctuations.