JUNO BEACH, Fla., Feb. 19, 2020 /PRNewswire/ -- NextEra
Energy, Inc. (NYSE: NEE) announced today that it has agreed to sell
$2.5 billion of equity units to J.P.
Morgan, Wells Fargo Securities, and BofA Securities. The
transaction is expected to close on Feb. 21,
2020.
Each equity unit will be issued in 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 a NextEra
Energy Capital Holdings, Inc. debenture due March 1, 2025, 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 5.279%, consisting of interest on the
debentures and payments under the stock purchase contracts.
Each stock purchase contract will require the holder to purchase
NextEra Energy common stock for cash, based on a per-share price
range of $282.04 to $352.55. The higher end of this price range
reflects a premium of 25% over the New York Stock Exchange closing
price of NextEra Energy common stock on Feb.
18, 2020, which was $282.04.
The holders must complete the stock purchase by no later than
March 1, 2023, and their purchase
obligations may be satisfied with proceeds raised from remarketing
the debentures that comprise part of their equity units.
The net proceeds from the sale of the equity units, which are
expected to be approximately $2.42
billion (after deducting the underwriting discount and other
offering expenses), will be added to the general funds of NextEra
Energy Capital Holdings. NextEra Energy Capital Holdings expects to
use its general funds to fund investments in energy and power
projects and for other general corporate purposes, including the
repayment of all or a portion of NextEra Energy Capital Holdings'
outstanding commercial paper obligations.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be
any sale of securities to which this communication relates in any
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The offering may be
made only by means of a prospectus and the related prospectus
supplement, copies of which may be obtained from J.P. Morgan
Securities LLC at Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewater, NY 11717,
Phone: 866-803-9204.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE)
is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns two
electric companies in Florida:
Florida Power & Light Company,
which serves more than 5 million customer accounts in Florida and is the largest rate-regulated
electric utility in the United
States as measured by retail electricity produced and sold;
and Gulf Power Company, which serves more than 470,000 customers in
eight counties throughout northwest Florida. NextEra Energy also
owns a competitive energy business, NextEra Energy Resources, LLC,
which, together with its affiliated entities, is the world's
largest generator of renewable energy from the wind and sun and a
world leader in battery storage. Through its subsidiaries, NextEra
Energy generates clean, emissions-free electricity from eight
commercial nuclear power units in Florida, New
Hampshire, Iowa and
Wisconsin. A Fortune 200 company
and included in the S&P 100 index, NextEra Energy has been
recognized often by third parties for its efforts in
sustainability, corporate responsibility, ethics and compliance,
and diversity. NextEra Energy is ranked No. 1 in the electric and
gas utilities industry on Fortune's 2020 list of "World's Most
Admired Companies" and ranked among the top 25 on Fortune's 2018
list of companies that "Change the World."
Cautionary Statements And Risk Factors That
May Affect Future Results
This news release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
not statements of historical facts, but instead represent the
current expectations of NextEra Energy, Inc. (together with its
subsidiaries, NextEra Energy) regarding future operating results
and other future events, many of which, by their nature, are
inherently uncertain and outside of NextEra Energy's control.
Forward-looking statements in this news release include, among
others, statements concerning adjusted earnings per share
expectations and future operating performance, statements
concerning future dividends, and results of acquisitions. In some
cases, you can identify the forward-looking statements by words or
phrases such as "will," "may result," "expect," "anticipate,"
"believe," "intend," "plan," "seek," "potential," "projection,"
"forecast," "predict," "goals," "target," "outlook," "should,"
"would" or similar words or expressions. You should not place
undue reliance on these forward-looking statements, which are not a
guarantee of future performance. The future results of NextEra
Energy and its business and financial condition are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements, or may require it to limit or eliminate certain
operations. These risks and uncertainties include, but are not
limited to, the following: effects of extensive regulation of
NextEra Energy's business operations; inability of NextEra Energy
to recover in a timely manner any significant amount of costs, a
return on certain assets or a reasonable return on invested capital
through base rates, cost recovery clauses, other regulatory
mechanisms or otherwise; impact of political, regulatory and
economic factors on regulatory decisions important to NextEra
Energy; disallowance of cost recovery based on a finding of
imprudent use of derivative instruments; effect of any reductions
or modifications to, or elimination of, governmental incentives or
policies that support utility scale renewable energy projects or
the imposition of additional tax laws, policies or assessments on
renewable energy; impact of new or revised laws, regulations,
interpretations or ballot or regulatory initiatives on NextEra
Energy; capital expenditures, increased operating costs and various
liabilities attributable to environmental laws, regulations and
other standards applicable to NextEra Energy; effects on NextEra
Energy of federal or state laws or regulations mandating new or
additional limits on the production of greenhouse gas emissions;
exposure of NextEra Energy to significant and increasing compliance
costs and substantial monetary penalties and other sanctions as a
result of extensive federal regulation of its operations and
businesses; effect on NextEra Energy of changes in tax laws,
guidance or policies as well as in judgments and estimates used to
determine tax-related asset and liability amounts; impact on
NextEra Energy of adverse results of litigation; effect on NextEra
Energy of failure to proceed with projects under development or
inability to complete the construction of (or capital improvements
to) electric generation, transmission and distribution facilities,
gas infrastructure facilities or other facilities on schedule or
within budget; impact on development and operating activities of
NextEra Energy resulting from risks related to project siting,
financing, construction, permitting, governmental approvals and the
negotiation of project development agreements; risks involved in
the operation and maintenance of electric generation, transmission
and distribution facilities, gas infrastructure facilities, retail
gas distribution system in Florida
and other facilities; effect on NextEra Energy of a lack of growth
or slower growth in the number of customers or in customer usage;
impact on NextEra Energy of severe weather and other weather
conditions; threats of terrorism and catastrophic events that could
result from terrorism, cyberattacks or other attempts to disrupt
NextEra Energy's business or the businesses of third parties;
inability to obtain adequate insurance coverage for protection of
NextEra Energy against significant losses and risk that insurance
coverage does not provide protection against all significant
losses; a prolonged period of low gas and oil prices could impact
NextEra Energy's gas infrastructure business and cause NextEra
Energy to delay or cancel certain gas infrastructure projects and
could result in certain projects becoming impaired; risk of
increased operating costs resulting from unfavorable supply costs
necessary to provide full energy and capacity requirement services;
inability or failure to manage properly or hedge effectively the
commodity risk within its portfolio; effect of reductions in the
liquidity of energy markets on NextEra Energy's ability to manage
operational risks; effectiveness of NextEra Energy's risk
management tools associated with its hedging and trading procedures
to protect against significant losses, including the effect of
unforeseen price variances from historical behavior; impact of
unavailability or disruption of power transmission or commodity
transportation facilities on sale and delivery of power or natural
gas; exposure of NextEra Energy to credit and performance risk from
customers, hedging counterparties and vendors; failure of
counterparties to perform under derivative contracts or of
requirement for NextEra Energy to post margin cash collateral under
derivative contracts; failure or breach of NextEra Energy's
information technology systems; risks to NextEra Energy's retail
businesses from compromise of sensitive customer data; losses from
volatility in the market values of derivative instruments and
limited liquidity in OTC markets; impact of negative publicity;
inability to maintain, negotiate or renegotiate acceptable
franchise agreements; occurrence of work strikes or stoppages and
increasing personnel costs; NextEra Energy's ability to
successfully identify, complete and integrate acquisitions,
including the effect of increased competition for acquisitions;
environmental, health and financial risks associated with ownership
and operation of nuclear generation facilities; liability of
NextEra Energy for significant retrospective assessments and/or
retrospective insurance premiums in the event of an incident at
certain nuclear generation facilities; increased operating and
capital expenditures and/or reduced revenues at nuclear generation
facilities resulting from orders or new regulations of the Nuclear
Regulatory Commission; inability to operate any of NextEra Energy's
owned nuclear generation units through the end of their respective
operating licenses or through expected shutdown; effect of
disruptions, uncertainty or volatility in the credit and capital
markets or actions by third parties in connection with
project-specific or other financing arrangements on NextEra
Energy's ability to fund its liquidity and capital needs and meet
its growth objectives; inability to maintain current credit
ratings; impairment of liquidity from inability of credit providers
to fund their credit commitments or to maintain their current
credit ratings; poor market performance and other economic factors
that could affect NextEra Energy's defined benefit pension plan's
funded status; poor market performance and other risks to the asset
values of nuclear decommissioning funds; changes in market value
and other risks to certain of NextEra Energy's investments; effect
of inability of NextEra Energy subsidiaries to pay upstream
dividends or repay funds to NextEra Energy or of NextEra Energy's
performance under guarantees of subsidiary obligations on NextEra
Energy's ability to meet its financial obligations and to pay
dividends on its common stock; the fact that the amount and timing
of dividends payable on NextEra Energy's common stock, as well as
the dividend policy approved by NextEra Energy's board of directors
from time to time, and changes to that policy, are within the sole
discretion of NextEra Energy's board of directors and, if declared
and paid, dividends may be in amounts that are less than might be
expected by shareholders; NEP's inability to access sources of
capital on commercially reasonable terms could have an effect on
its ability to consummate future acquisitions and on the value of
NextEra Energy's limited partner interest in NextEra Energy
Operating Partners, LP; and effects of disruptions, uncertainty or
volatility in the credit and capital markets on the market price of
NextEra Energy's common stock. NextEra Energy discusses these and
other risks and uncertainties in its annual report on Form 10-K for
the year ended December 31, 2019 and
other SEC filings, and this news release should be read in
conjunction with such SEC filings made through the date of this
news release. The forward-looking statements made in this news
release are made only as of the date of this news release and
NextEra Energy undertakes no obligation to update any
forward-looking statements.
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SOURCE NextEra Energy, Inc.