NextEra Energy Inc. has agreed to sell $350 million of equity units to Credit Suisse Securities (USA) LLC. NextEra Energy has granted Credit Suisse Securities an option to purchase an additional $52.5 million of equity units to cover over-allotments. The transaction is expected to close on Sept. 21.
Each equity unit will have a stated amount of $50. Each equity unit will consist of a contract to purchase NextEra Energy common stock in the future and a 5% undivided beneficial ownership interest in an FPL Group Capital Inc. debenture due Sept. 1, 2015, in the principal amount of $1,000. The debentures will be guaranteed by NextEra Energy, FPL Group Capital's parent company.
Each stock-purchase contract will require the holder to purchase NextEra Energy common stock for cash, based on a per-share price range of $55.02 to $68.78.
Net proceeds from the sale of the equity units will be added to FPL Group Capital's general funds. FPL Group Capital expects to use its general funds to fund investments in independent power projects, including renewable power projects, and for other general corporate purposes, including the repayment of commercial paper.
SOURCE: NextEra Energy Inc.