NextEra Energy, Inc. (NEE) announced on Monday plans to issue $2.0 billion in equity units.
Each equity unit will have a designated value of $50 and will comprise two parts: a contract to purchase NextEra Energy common stock in the future and a 5% undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc. debenture, maturing on June 1, 2029, with a principal amount of $1,000. These debentures will be guaranteed by NextEra Energy, Inc., the parent company.
Holders of the equity units will be obligated to purchase the common stock by June 1, 2027. This obligation can be fulfilled using proceeds from the remarketing of the debentures included in their equity units.
The net proceeds from this sale are expected to be around $1.94 billion and will be added to the general funds of NextEra Energy Capital Holdings.
NextEra Energy Capital Holdings intends to use these general funds to invest in energy and power projects, as well as for other general corporate purposes, including the repayment of a portion of its outstanding commercial paper obligations.
