Summary
NextEra Energy Inc. (NEE) reported a material event on February 8, 2011, involving its indirect wholly-owned subsidiary, Baldwin Wind, LLC. Baldwin Wind issued $82 million in 6.25% limited-recourse senior secured notes maturing in January 2031. The proceeds from this debt issuance were primarily used to reimburse NextEra Energy Resources, LLC (a parent subsidiary) for its capital contributions towards the development and construction of a 102-megawatt wind generation facility located in North Dakota. This issuance represents a significant financing activity for a renewable energy project within the NextEra Energy portfolio.
Key Highlights
- 1Baldwin Wind, LLC, an indirect subsidiary of NEE, issued $82 million in senior secured notes.
- 2The notes carry a 6.25% interest rate and mature in January 2031.
- 3The financing is 'limited-recourse,' meaning the lenders' claims are primarily limited to the assets of Baldwin Wind and the project.
- 4Proceeds will reimburse NextEra Energy Resources for capital contributions to a 102 MW wind generation facility.
- 5The facility is located in North Dakota.
- 6The notes are secured by liens on the wind generating facility's assets and ownership interests in Baldwin Wind.
- 7Standard default and acceleration provisions are included in the note indenture.
Frequently Asked Questions
The primary purpose is to finance the development and construction of a 102-megawatt wind generation facility in North Dakota, specifically to reimburse NextEra Energy Resources for its capital contributions to this project.
Limited-recourse means that the lenders' ability to recover their investment is primarily limited to the specific assets pledged as collateral (the wind generating facility and related assets of Baldwin Wind) and not the broader assets of NextEra Energy, Inc. or its parent subsidiaries.
Key risks include project performance (ability of the wind facility to generate sufficient revenue to cover debt payments), potential defaults under the note indenture (e.g., failure to make payments, covenant breaches), and events related to the generating facility or bankruptcy of Baldwin Wind or key parties involved.
The notes mature in January 2031 and carry a fixed interest rate of 6.25%.