NextEra Energy offers $25-par junior subordinated debentures due 2076 at 5.375%-5.5% yield

By Stephanie N. Rotondo

Seattle, May 31 – NextEra Energy Capital Holdings Inc. plans to sell at least $200 million of $25-par series K junior subordinated debentures due June 1, 2076 (expected ratings: Baa2/BBB/BBB), according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is 5.375% to 5.5%, a market source said.

The notes will be unconditionally and irrevocably guaranteed by NextEra Energy Inc.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Raymond James & Associates Inc. and RBC Capital Markets are co-managers.

Interest will be payable on the first day of March, June, September and December, beginning Sept. 1. The payments can be deferred for up to 10 years.

The notes can be redeemed prior to June 1, 2021 at par pus a “make-whole” premium. The notes are also redeemable after June 1, 2021 at any time at par plus accrued interest.

Upon a tax event, the notes are redeemable in whole at par plus accrued interest. A rating agency event kicks the redemption price up to 102% of par plus accrued interest.

The new securities will be listed on the New York Stock Exchange.

Proceeds will be used to repay a portion of the company’s commercial paper obligations and for other general corporate purposes.

NextEra is a Juno Beach, Fla.-based power provider.

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