NextEra Energy Reveals Sale Of Equity Units Worth $1.5 Bln

(RTTNews) - NextEra Energy, Inc. (NEE) Wednesday said it has agreed to sell $1.50 billion of equity units to Goldman, Sachs & Co., Credit Suisse and Mizuho Securities. The net proceeds are expected to be $1.45 billion and will be added to the general funds of NextEra Energy Capital Holdings. The transaction is expected to close on Aug. 8, 2016.

The clean energy company plans to issue equity unit in a stated amount of $50 and each equity unit will consist of a contract to purchase NextEra Energy common stock in the future and a 5 percent undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc. debenture due Sept. 1, 2021, to be issued in the principal amount of $1,000. The debentures will be guaranteed by NextEra Energy Capital Holdings' parent company, NextEra Energy, Inc.

Total annual distributions on the equity units will be at the rate of 6.123 percent. Each stock purchase contract will require the holder to purchase NextEra Energy common stock for cash, based on a per-share price range of $127.63 to $159.54 that represents 25 percent premium at the higher end.