Summary
This 8-K filing from NextEra Energy, Inc. (NEE) reports on two significant financial events occurring on December 12, 2013. Firstly, NextEra Energy Capital Holdings, Inc. (NEECH), a subsidiary, entered into a new, larger three-year revolving credit agreement for up to $750 million, replacing a $500 million facility. This enhanced credit line is available for general corporate purposes and is subject to NEE maintaining a specific funded debt to total capitalization ratio, with NEE providing a guarantee. Secondly, Trillium Windpower, LP, an indirect subsidiary, issued approximately C$315 million (US$296 million) in 5.803% senior secured amortizing notes due in 2033. The proceeds were used to partially repay construction loans for two wind generating facilities in Ontario, Canada, totaling approximately 147 megawatts. NEECH provided a guarantee for certain outstanding construction costs and spare parts until mid-2014, with NEE also guaranteeing NEECH's obligations. These notes are secured by the assets of the wind facilities.
Key Highlights
- 1NextEra Energy Capital Holdings, Inc. (NEECH) secured a new $750 million, three-year revolving credit facility, increasing its borrowing capacity by $250 million.
- 2The new credit agreement replaces a previous $500 million facility that expired on December 10, 2013.
- 3The credit facility is available for NEECH's general corporate purposes.
- 4NEE provides a guarantee for NEECH's obligations under the new credit agreement.
- 5An indirect subsidiary, Trillium Windpower, LP, issued C$315 million (US$296 million) of 5.803% senior secured notes maturing in February 2033.
- 6Proceeds from the notes will be used to partially repay construction loans for 147 MW of wind generating facilities in Ontario, Canada.
- 7NEECH and NEE provided guarantees for certain construction-related obligations associated with the Ontario wind projects, which are expected to be satisfied by mid-2014.