NextEra Energy announces sale of equity units
JUNO BEACH, Fla. – NextEra Energy, Inc. (NYSE:NEE) announced today that it has agreed to sell $350 million of equity units to Credit Suisse Securities (USA) LLC. NextEra Energy has granted Credit Suisse Securities (USA) LLC 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, 2010.
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 1/20th, or 5 percent, 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 FPL Group Capital’s parent company, NextEra Energy, Inc.
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. The higher end of this price range reflects a premium of 25 percent over the New York Stock Exchange closing price of NextEra Energy common stock on Sept. 14, 2010, which was $55.02. Total annual distributions on the equity units will be at the rate of 7 percent, consisting of interest on the debentures and payments under the stock purchase contracts. The holder must complete the stock purchase by no later than Sept. 1, 2013, and may satisfy its purchase obligation with proceeds raised from remarketing the FPL Group Capital debentures that comprise part of its equity unit.
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. Each offering may be made only by means of a prospectus and the related prospectus supplement, copies of which may be obtained from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010 (or at 800-221-1037).
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with 2009 revenues of more than $15 billion, nearly 43,000 megawatts of generating capacity, and more than 15,000 employees in 28 states and Canada. Headquartered in Juno Beach, Fla., NextEra Energy’s principal subsidiaries are NextEra Energy Resources, LLC, the largest generator in North America of renewable energy from the wind and sun, and Florida Power & Light Company, which serves approximately 4.5 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the country. Through its subsidiaries, NextEra Energy collectively operates the third largest U.S. nuclear power generation fleet. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.NextEraEnergyResources.com, www.FPL.com.
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