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.