JUNO
BEACH, Fla., Feb. 27,
2024 /PRNewswire/ -- NextEra Energy Capital Holdings,
Inc., a subsidiary of NextEra Energy, Inc. (NYSE: NEE), today
announced an offering of $900 million
in aggregate principal amount of its exchangeable senior notes due
2027 (the "notes") in a private placement to qualified
institutional buyers pursuant to Rule 144A under the Securities Act
of 1933, as amended (the "Securities Act"). In addition, NextEra
Energy Capital Holdings intends to grant the initial purchasers the
option to purchase up to an additional $100
million aggregate principal amount of the notes within a
13-day period beginning on, and including, the date on which the
notes are first issued.
The notes will accrue interest payable semi-annually in arrears
and will mature on March 1, 2027,
unless earlier purchased by NextEra Energy Capital Holdings or
exchanged. Holders may exchange all or a portion of their notes at
any time prior to their maturity date in principal amounts equal to
$1,000 or an integral multiple
thereof. Upon exchange, NextEra Energy Capital Holdings will pay
cash up to the aggregate principal amount of the notes to be
exchanged and has the right, at its sole discretion, to pay or
deliver cash, shares of NextEra Energy common stock or a
combination of both to settle any remaining obligation in excess of
the aggregate principal amount of the notes being exchanged. At
this time, NextEra Energy Capital Holdings expects to settle any
remaining obligation in cash. The notes will be unconditionally and
irrevocably guaranteed on a senior unsecured basis by NextEra
Energy.
NextEra Energy intends to use a portion of the net proceeds from
the offering to pay the cost of the capped call transactions
described below. NextEra Energy Capital Holdings will add the
remainder of the net proceeds to its general funds and expects to
use its general funds to fund investments in energy and power
projects and for other general corporate purposes, including the
repayment of a portion of its outstanding commercial paper
obligations.
In connection with the offering of the notes, NextEra Energy
intends to enter into one or more privately negotiated capped call
transactions with one or more of the initial purchasers of the
notes or their respective affiliates and/or certain other financial
institutions (the "hedge counterparties"). The capped call
transactions may be settled with cash or, at NextEra Energy's
election, with shares of NextEra Energy common stock. At this
time, NextEra Energy expects to settle the capped call transactions
in cash. Any capped call settlement value is expected to offset the
value to be delivered upon exchange of the notes (as applicable) as
a result of share price improvement up to approximately 50% over
the closing sale price of NextEra Energy common stock on the date
the notes offering is priced, which will be subject to certain
adjustments under the terms of the capped call transactions.
The offer and sale of the notes, the guarantee and the shares of
NextEra Energy common stock, if any, deliverable upon exchange of
the notes, if any, have not been registered under the Securities
Act, or the securities laws of any other jurisdiction. Accordingly,
the notes are being offered and sold only to qualified
institutional buyers in reliance on Rule 144A under the Securities
Act. The notes, the guarantee and NextEra Energy common stock
deliverable upon exchange of the notes are not transferable absent
registration or an applicable exemption from the registration
requirements of the Securities Act. 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.
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 5.9 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. A
Fortune 200 company, NextEra Energy has been recognized often by
third parties for its efforts in sustainability, corporate
responsibility, ethics and compliance, and diversity.
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.
Forward-looking statements in this news release include, among
others, statements concerning NextEra Energy's future financing
activities. 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; impacts of NextEra
Energy of allegations of violations of law; 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, storage, transmission and
distribution facilities, gas infrastructure facilities and other
facilities; effect on NextEra Energy of a lack of growth, slower
growth or a decline 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 geopolitical factors, 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 or planned
license extensions; 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, 2023, 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.