FPL Group Capital Announces Sale of $400 Million of Series C Junior Subordinated Debentures Guaranteed by FPL Group

JUNO BEACH, Fla. – FPL Group Capital Inc today announced the sale of $400 million principal amount of Series C Junior Subordinated Debentures due June 15, 2067. The junior subordinated debentures will initially bear interest at 6.65 percent per year payable semi‑annually. Beginning June 15, 2017, the junior subordinated debentures will bear interest at the Three‑Month LIBOR Rate plus 212.5 basis points, reset quarterly. The junior subordinated debentures will be fully and unconditionally guaranteed on a subordinated basis by FPL Group Capital’s parent company, FPL Group, Inc. (NYSE:FPL).

The junior subordinated debentures will be offered to the public at 99.840 percent of par.

Net proceeds from the sale will be added to FPL Group Capital’s general funds and FPL Group Capital expects to use its general funds to repay a portion of commercial paper issued to fund investments by FPL Group Capital in independent power projects.

The sale was underwritten by Banc of America Securities LLC, J.P. Morgan Securities Inc., Lehman Brothers Inc., and Wachovia Capital Markets, LLC as joint book‑running managers. The co‑managers are Bear, Stearns & Co. Inc., Calyon Securities (USA) Inc., Deutsche Bank Securities Inc., Fortis Securities LLC, Greenwich Capital Markets, Inc., HSBC Securities (USA) Inc., SunTrust Capital Markets, Inc. and The Williams Capital Group, L.P. J.P. Morgan Securities Inc. and Lehman Brothers Inc. acted as structuring advisors for this transaction.