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NextEra Energy to sell USD 2.5bn in equity units to investment banks

The Tuscola Bay II Wind Energy Center. Photo by: NextEra Energy Resources (www.nexteraenergyresources.com)

February 20 (Renewables Now) - US clean energy company NextEra Energy Inc (NYSE:NEE) has agreed to sell USD 2.5 billion (EUR 2.32bn) worth of equity units to a trio of major investment banking businesses.

Specifically, JP Morgan (NYSE:JPM) and the securities subsidiaries of Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC) have entered into an agreement to buy units that include a contract to purchase NextEra Energy common stock in the future along with a 5% undivided beneficial ownership interest in a debenture issued by NextEra Energy Capital Holdings Inc that is due March 1, 2025.

NextEra Energy expects to raise some USD 2.42 billion in net proceeds from the transaction and add them to the general funds of NextEra Energy Capital Holdings. The latter will use them to finance investments in energy and power projects and for other general corporate purposes, the announcement says.

The transaction is expected to close on February 21.

The above-mentioned stock purchase contracts included in the equity units will require the holder to buy NextEra Energy common stock for a cash sum in the range of USD 282.04 to USD 352.55 apiece. Holders must conclude the stock purchase by March 1, 2023.

(USD 1.0 = EUR 0.926)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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