NextEra issues senior bonds to back 391-MW wind acquisition

NextEra Energy Partners LP (NYSE:NEP) has launched a USD-500-million (EUR 412.4m) senior notes placement in a bid to finance the acquisition of a 391-MW wind portfolio from Brookfield Renewable.

As agreed in April, NextEra is set to purchase three wind farms in California and one in New Hampshire in a deal worth USD 733 million. The portfolio's capacity is almost fully contracted with investment-grade counterparties.

NextEra will support the acquisition with a private sale of convertible senior notes due 2024, it said on Monday. The notes will be fully and unconditionally guaranteed on a senior unsecured basis by NextEra Energy Operating Partners LP, a direct subsidiary of NextEra Energy Partners.

Some of the net proceeds from the placement will be allocated to pay the initial cost of capped call transactions with the initial purchaser of the notes or other financial institutions. A portion of the funds may temporarily be invested in short-term instruments or used for general partnership purposes.

At the time of agreeing the 391-MW acquisition, NextEra said that the price is subject to adjustments at closing, which is expected in the third quarter of 2021.

(USD 1.0 = EUR 0.825)

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