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.
Frequently Asked Questions
This filing was made to report on the issuance of $800 million in debentures by NextEra Energy Capital Holdings, Inc., a subsidiary of NextEra Energy, Inc., and to include certain exhibits related to this debt offering.
The issuance consists of $400 million of Floating Rate Debentures due February 25, 2022, with interest at three-month LIBOR plus 0.72%, and $400 million of 3.20% Debentures due February 25, 2022. Both series have a maturity date of February 25, 2022.
Yes, NextEra Energy, Inc. (NEE) has provided a guarantee for the principal amount of these debentures, meaning NEE is obligated to ensure the repayment of the debt.
The Floating Rate Debentures bear interest at a rate equal to three-month LIBOR plus a spread of 0.72%. This interest rate will be reset quarterly, with the first reset occurring on May 25, 2019.