JUNO BEACH, Fla., Sept. 16, 2020 /PRNewswire/ -- NextEra
Energy, Inc. (NYSE: NEE) announced today that it has agreed to sell
$2.0 billion of equity units to BofA
Securities and Barclays. The transaction is expected to close on
Sept. 18, 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 Sept. 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 6.219%, 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 $295.70 to $369.63. 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 Sept. 15, 2020, which was $295.70. The holders must complete the stock
purchase by no later than Sept. 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 $1.94
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
potentially to redeem a portion of its outstanding junior
subordinated debentures.
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 BofA Securities,
NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte
NC 28255-0001, Attn: Prospectus Department, or by emailing
dg.prospectus_requests@bofa.com.
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 approximately 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. (NextEra Energy) and
Florida Power & Light Company
(FPL) regarding future operating results and other future events,
many of which, by their nature, are inherently uncertain and
outside of NextEra Energy's and FPL'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 FPL and their
business and financial condition are subject to risks and
uncertainties that could cause their actual results to differ
materially from those expressed or implied in the forward-looking
statements, or may require them to limit or eliminate certain
operations. These risks and uncertainties include, but are not
limited to, those discussed in this news release and the following:
effects of extensive regulation of NextEra Energy's and FPL's
business operations; inability of NextEra Energy and FPL 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 and FPL;
disallowance of cost recovery by FPL 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 of
NextEra Energy Resources, LLC and its affiliated entities (NextEra
Energy Resources) 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 and FPL; capital expenditures,
increased operating costs and various liabilities attributable to
environmental laws, regulations and other standards applicable to
NextEra Energy and FPL; effects on NextEra Energy and FPL of
federal or state laws or regulations mandating new or additional
limits on the production of greenhouse gas emissions; exposure of
NextEra Energy and FPL to significant and increasing compliance
costs and substantial monetary penalties and other sanctions as a
result of extensive federal regulation of their operations and
businesses; effect on NextEra Energy and FPL 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 and FPL of adverse results of litigation; effect
on NextEra Energy and FPL 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 and FPL 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 and FPL of a lack of growth or slower
growth in the number of customers or in customer usage; impact on
NextEra Energy and FPL 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 and FPL's business or the businesses of third
parties; inability to obtain adequate insurance coverage for
protection of NextEra Energy and FPL 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 Resources' gas infrastructure
business and cause NextEra Energy Resources to delay or cancel
certain gas infrastructure projects and could result in certain
projects becoming impaired; risk to NextEra Energy Resources of
increased operating costs resulting from unfavorable supply costs
necessary to provide NextEra Energy Resources' full energy and
capacity requirement services; inability or failure by NextEra
Energy Resources 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 and FPL's risk
management tools associated with their 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 by NextEra Energy, including FPL; exposure of
NextEra Energy and FPL to credit and performance risk from
customers, hedging counterparties and vendors; failure of NextEra
Energy or FPL counterparties to perform under derivative contracts
or of requirement for NextEra Energy or FPL to post margin cash
collateral under derivative contracts; failure or breach of NextEra
Energy's or FPL's information technology systems; risks to NextEra
Energy and FPL'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 of NextEra Energy and FPL to
maintain, negotiate or renegotiate acceptable franchise agreements
with municipalities and counties in Florida; 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 NextEra
Energy Resources' and FPL's ownership and operation of nuclear
generation facilities; liability of NextEra Energy and FPL 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 of NextEra
Energy or FPL resulting from orders or new regulations of the
Nuclear Regulatory Commission; inability to operate any of NextEra
Energy Resources' or FPL's owned nuclear generation units through
the end of their respective operating licenses; 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 and FPL's ability to fund their liquidity and capital
needs and meet their growth objectives; inability of NextEra
Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain
their current credit ratings; impairment of NextEra Energy's and
FPL's 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 NextEra Energy's and FPL's 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; effects of
disruptions, uncertainty or volatility in the credit and capital
markets on the market price of NextEra Energy's common stock; and
the ultimate severity and duration of the coronavirus pandemic and
its effects on NextEra Energy's or FPL's businesses. NextEra Energy
and FPL discuss these and other risks and uncertainties in their
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.
The forward-looking statements made in this news release are made
only as of the date of this news release and NextEra Energy and FPL
undertake no obligation to update any forward-looking
statements.
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SOURCE NextEra Energy, Inc.