WASHINGTON (dpa-AFX) - NextEra Energy, Inc. (NEE), an electric services firm, said on Thursday that it has agreed to sell $2 billion of equity units to Citigroup, Goldman Sachs & Co. LLC, and Mizuho.
The transaction is expected to close on September 19.
The net proceeds from the sale are estimated to be at around $1.94 billion. The company intends to use the fund towards investments in energy and power projects, and for other general corporate purposes.
An equity unit will be provided for a sum of $50. Each equity unit will consist of a contract to buy NextEra stock in the future, and a 5 percent undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc.
The debenture is due September 1, 2027, to be issued in the principal amount of $1,000, which will be guaranteed by NextEra Energy Capital Holdings' parent company, NextEra Energy, Inc.
The yearly distributions on the equity units will be at the rate of 6.926 percent.
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 shows a premium of 25 percent over the NYSE closing price of NextEra Energy common stock on September 14.
The holders are required to complete the stock purchase before September 1, 2025.
NEE is trading down by 3.92 percent at $85.40 per share in pre-market on the New York Stock Exchange.
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