8-KOther EventsExhibits & Filings

NEXTERA ENERGY INC 8-K Report, Corporate Update (Aug 24, 2020)

Filed August 24, 2020For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

On August 24, 2020, NextEra Energy Inc.'s subsidiary, Florida Power & Light Company (FPL), completed the sale of $145.106 million in principal amount of Floating Rate Notes due in 2070. These notes carry a variable interest rate tied to three-month LIBOR, adjusted quarterly with a floor of 0.00%, and a spread of minus 0.30% to LIBOR. The filing reports on the issuance of these long-term debt securities, which were registered under the Securities Act of 1933. This issuance represents a debt financing activity for FPL, aimed at raising capital. Investors should note the long maturity of the notes (50 years) and the floating rate mechanism, which introduces interest rate sensitivity. The primary purpose of this 8-K filing is to provide the necessary documentation, including officer's certificates and legal opinions from counsel, related to this debt issuance.

Key Highlights

  • 1Florida Power & Light Company (FPL), a subsidiary of NextEra Energy Inc., issued $145,106,000 in Floating Rate Notes.
  • 2The notes have a maturity date of August 24, 2070, representing a 50-year term.
  • 3Interest on the notes is set at three-month LIBOR minus 0.30%, with quarterly resets.
  • 4A floor of 0.00% is in place, meaning the interest rate will not fall below zero.
  • 5The issuance was registered under the Securities Act of 1933.
  • 6The filing includes supporting documentation such as an Officer's Certificate and legal opinions from counsel.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide official documentation for the sale of $145.106 million in Floating Rate Notes by Florida Power & Light Company, a subsidiary of NextEra Energy Inc.

The Notes have a principal amount of $145,106,000, mature on August 24, 2070, and bear interest at a rate of three-month LIBOR minus 0.30%, resetting quarterly. The interest rate will not be less than 0.00%.

The floating rate means the interest paid on these notes will change quarterly based on the three-month LIBOR rate. This exposes investors to potential increases or decreases in interest payments as market rates fluctuate, although the rate will not go below 0.00%.

The legal counsels providing opinions for this issuance are Squire Patton Boggs (US) LLP and Morgan, Lewis & Bockius LLP, both acting as counsel to Florida Power & Light Company.