JUNO
BEACH, Fla., Sept. 15,
2022 /PRNewswire/ -- NextEra Energy, Inc. (NYSE: NEE)
announced today that it has agreed to sell $2.0 billion of equity units to Citigroup,
Goldman Sachs & Co. LLC and Mizuho. The transaction is expected
to close on Sept. 19, 2022.
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, 2027, 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 6.926%, 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 $88.88 to $111.10. 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. 14, 2022, which was $88.88. The holders must complete the stock
purchase by no later than Sept. 1,
2025, 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 the
repayment of its 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 Citigroup, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717 (Tel:
800-831-9146).
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy
company headquartered in Juno Beach,
Florida. NextEra Energy owns Florida
Power & Light Company, which is America's largest
electric utility that sells more power than any other utility,
providing clean, affordable, reliable electricity to approximately
5.8 million customer accounts, or more than 12 million people
across Florida. NextEra Energy also owns a competitive clean 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 seven commercial nuclear power
units in Florida, New Hampshire and Wisconsin. 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 2022 list of "World's Most Admired Companies,"
recognized on Fortune's 2021 list of companies that "Change the
World" and received the S&P Global Platts 2020 Energy
Transition Award for leadership in environmental, social and
governance.
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. 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, those discussed in this news release and 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, operational 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, tariffs, duties, policies or
assessments on renewable energy or equipment necessary to generate
it or deliver it; impact of new or revised laws, regulations,
interpretations or constitutional ballot and 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, planning, financing, construction, permitting,
governmental approvals and the negotiation of project development
agreements, as well as supply chain disruptions; 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 over-the-counter 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; 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; NextEra
Energy Partners, LP'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
public health crises, epidemics and pandemics, and its effects on
NextEra Energy's business. NextEra Energy discusses these and other
risks and uncertainties in its annual report on Form 10-K for the
year ended December 31, 2021 and
other Securities and Exchange Commission (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 undertakes no obligation to update any
forward-looking statements.
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SOURCE NextEra Energy, Inc.