Summary
NextEra Energy, Inc. (NEE) announced on December 7, 2011, a significant capital allocation initiative through an accelerated share repurchase (ASR) agreement. The company purchased approximately 6.7 million shares of its common stock for $375 million at $55.76 per share. This buyback is part of its ongoing share repurchase program. These repurchases are strategically funded, in part, by the expected proceeds of approximately $825 million from the recent and upcoming sale of five natural gas-fired power plants. NextEra Energy views this use of capital as aligned with its core strategy to maintain a strong investment-grade credit rating by optimizing its capital structure.
Key Highlights
- 1NextEra Energy initiated an accelerated share repurchase (ASR) of approximately 6.7 million shares of common stock for $375 million.
- 2The ASR agreement was executed at a price of $55.76 per share.
- 3Proceeds from the sale of five natural gas-fired power plants are expected to generate approximately $825 million in cash.
- 4A portion of the proceeds from the power plant sales will fund the share repurchase.
- 5The company stated the repurchase strategy supports its goal of maintaining a strong investment-grade credit rating.
- 6The final number of shares repurchased will be determined at settlement, expected in Q1 2012.
- 7All repurchased shares will be retired.