Summary
NextEra Energy, Inc. (NEE) subsidiary, NextEra Energy Capital Holdings, Inc., successfully issued $800 million in aggregate principal amount of debentures on February 27, 2019. This issuance comprised $400 million of Floating Rate Debentures due February 25, 2022, and $400 million of 3.20% Debentures due February 25, 2022. NEE provided a guarantee for these debt securities, indicating its commitment to the obligations. The floating rate debentures are tied to three-month LIBOR plus a 0.72% spread, with quarterly resets beginning May 25, 2019, introducing variable interest rate exposure for this portion of the debt.
Key Highlights
- 1Total issuance of $800 million in debentures by NEE's subsidiary.
- 2The issuance includes $400 million in Floating Rate Debentures and $400 million in fixed-rate 3.20% Debentures.
- 3All debentures mature on February 25, 2022.
- 4NEE provides a guarantee for the principal amount of the debentures.
- 5Floating rate debentures have a spread of 0.72% over three-month LIBOR.
- 6Interest rate on floating rate debentures will reset quarterly.
- 7The debentures were registered under the Securities Act of 1933.