NextEra Energy (NEE) has priced its public offering of $2B of equity units. The transaction is expected to close on March 3, 2026.
Each equity unit will be sold for $50. Each unit includes:
- A contract to buy NextEra Energy common stock in the future, and
- Interests in two debentures issued by subsidiary NextEra Energy Capital Holdings, maturing in 2031 (Series P) and 2034 (Series Q), each with a $1,000 principal amount. The debentures are guaranteed by NextEra Energy.
The equity units will pay a 7.375% annual distribution based on the $50 unit price.
NextEra Energy (NEE) has granted the underwriters a 13-day option to purchase up to an additional aggregate stated amount of $0.30B, solely for the purpose of covering over-allotments.
The firm expects to raise about $1.97B from the sale, or ~$2.27B if the underwriters exercise their full over-allotment option. The proceeds will be added to the general funds of NextEra Energy Capital Holdings and will be used to invest in energy and power projects, as well as for general corporate purposes, including repaying some outstanding commercial paper debt.
Source: Press Release
