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NextEra Energy To Sell $1.94 Bln Of Equity Units To BofA Securities And Barclays - Quick Facts

NextEra Energy, Inc. (NEE) announced Wednesday that it has agreed to sell $2.0 billion of equity units to BofA Securities and Barclays. The transaction is expected to close on September 18, 2020.

Each equity unit will be issued in a stated amount of $50. Each equity unit will consist of a contract to purchase NextEra Energy common stock in the future and a 5% undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc. debenture due Sept. 1, 2025, to be issued in the principal amount of $1,000.

The debentures will be guaranteed by NextEra Energy Capital Holdings' parent company, NextEra Energy, Inc. Total annual distributions on the equity units will be at the rate of 6.219%, consisting of interest on the debentures and payments under the stock purchase contracts.

Each stock purchase contract will require the holder to purchase NextEra Energy common stock for cash, based on a per-share price range of $295.70 to $369.63, which reflects a premium of 25% over the New York Stock Exchange closing price of NextEra Energy common stock of $295.70 on Tuesday.

The net proceeds from the sale of the equity units, which are expected to be approximately $1.94 billion (after deducting the underwriting discount and other offering expenses), will be added to the general funds of NextEra Energy Capital Holdings.

NextEra Energy Capital Holdings expects to use its general funds to fund investments in energy and power projects and for other general corporate purposes, including potentially to redeem a portion of its outstanding junior subordinated debentures.

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