NextEra to Sell $500 Million in Equity Units to Financial Firms
By Ben Fox Rubin
NextEra Energy Inc. (NEE) agreed to sell $500 million of its equity units to Citigroup Inc. (C), Morgan Stanley (MS) and Credit Suisse Group AG (CS), with the power company planning to add the proceeds to the general fund of NextEra Energy Capital Holdings Inc.
Each equity unit will be issued at $50 and will consist of a contract to buy NextEra stock in the future, and a 5% undivided beneficial ownership interest in a NextEra Energy Capital Holdings debenture due Sept. 1, 2018, to be issued in the principal amount of $1,000.
Total annual distributions on the equity units will be at a rate of 5.8%, consisting of interest on the debentures and payments under the stock purchase contract.
Each stock purchase contract will require the holder to purchase NextEra Energy stock for cash, based on a per-share price range of $82.70 to $99.24, and the stock purchases must be completed no later than Sept. 1, 2016. The company's shares closed Thursday at $82.70.
NextEra--the largest U.S. renewable-energy generator and owner of the utility Florida Power & Light--had seen its profit decline in recent quarters as it spends more for plant upgrades and growth projects to support its expanding customer base. The company also faces challenges from low natural-gas and power prices at its wholesale power business.
Shares fell 1.2% premarket to $81.70. As of Thursday's close, the stock was up 20% so far this year.
Write to Ben Fox Rubin at firstname.lastname@example.org
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires 09-20-130846ET Copyright (c) 2013 Dow Jones & Company, Inc.