NextEra Energy Inc.'s wholly owned subsidiary, NextEra Energy Partners LP (NEP), has commenced an initial public offering (IPO) of its common units representing limited partner interests.
In May, NextEra Energy announced its plans for the IPO and said it formed NEP to own, operate and acquire contracted clean energy projects with stable, long-term cashflows through its limited partner interest in NextEra Energy Operating Partners LP. NextEra Energy Operating Partners will use net proceeds for general corporate purposes, including funding future acquisition opportunities.
NEP is offering 16,250,000 common units to the public. In addition, the underwriters have a 30-day option to purchase up to an additional 2,437,500 common units from NextEra Energy Partners at the IPO price, less the underwriting discount. The IPO price is currently expected to be between $19.00 and $21.00 per common unit. The common units of NextEra Energy Partners have been approved for listing on the New York Stock Exchange under the symbol ‘NEP.’
BofA Merrill Lynch and Goldman, Sachs & Co. are acting as joint book-running managers and structuring agents for the offering, and Morgan Stanley is acting as a joint book-running manager for the offering.