Summary
NextEra Energy, Inc. (NEE) reported significant financing activities through its indirect wholly-owned subsidiaries on June 13, 2014. Genesis Solar Funding, LLC, issued approximately $280 million in 5.60% limited-recourse senior secured amortizing notes due September 2038. The proceeds will primarily reimburse affiliates for costs associated with the construction of a 250 MW solar thermal generating facility in California and fund distributions to NEER for general corporate purposes. The notes are secured by the equity interests in Genesis Solar and its subsidiary, which indirectly owns the project. Additionally, Varna Wind, LP (Bluewater) secured approximately C$170 million (around $157 million) under a Canadian limited-recourse senior secured variable rate term loan. This loan, with a maturity of 18 years from a term conversion date expected in late 2014, will be used to partially repay an intercompany loan related to the development and construction of a 60 MW wind generating facility in Ontario, Canada. Bluewater has also entered into an interest rate swap to hedge against interest rate fluctuations. Both financing arrangements include standard default and acceleration clauses.
Key Highlights
- 1Genesis Solar Funding, LLC, an indirect NEER subsidiary, issued $280 million in 5.60% senior secured notes maturing in September 2038.
- 2Proceeds from the Genesis Solar notes will fund costs for a 250 MW solar thermal generating facility in California and provide distributions to NEER.
- 3Varna Wind, LP (Bluewater), another indirect NEER subsidiary, secured C$170 million (approx. $157 million) in a variable rate term loan.
- 4The Bluewater loan is for a 60 MW wind generating facility in Ontario, Canada.
- 5Both debt issuances are limited-recourse and senior secured, with collateral including project assets and equity interests.
- 6Bluewater has hedged interest rate risk for its new loan via an interest rate swap.
- 7The filings detail standard default and acceleration provisions common in project financing.