By Abigail W. Adams
Portland, Me., Dec. 8 – NextEra Energy Partners LP priced $500 million of 3.5-year convertible notes after the market close on Wednesday at 97 with a coupon of 2.5% to yield 3.415% and an initial conversion premium of 20%, according to a company news release and a market source.
Pricing came in line with talk for a fixed coupon of 2.5% and a fixed initial conversion premium of 20% and wide of initial talk for a reoffer price of 98 to 98.25, according to a market source.
Citigroup Global Markets Inc. was bookrunner for the Rule 144A offering, which does not carry a greenshoe.
The notes will be settled in cash up to the principal amount with any remaining amount to be settled in cash, shares or a combination of both at the company’s option.
In connection with the offering, the company entered into capped call transactions with a cap price of $118.6650.
Net proceeds are expected to be $488.8 million.
Proceeds will be used to cover the cost of the call spread, to fund a portion of the company’s acquisition of a 1,080-megawatt net interest in a renewable energy portfolio, to repay borrowings under its revolving credit facility and for general corporate purposes.
NextEra is a Juno Beach, Fla.-based clean energy company.
| Issuer: | NextEra Energy Partners LP
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| Amount: | $500 million
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| Greenshoe: | None
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| Securities: | Convertible senior notes
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| Maturity: | June 15, 2026
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| Bookrunner: | Citigroup Global Markets Inc.
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| Coupon: | 2.5%
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| Price: | 97
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| Yield: | 3.415%
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| Conversion premium: | 20%
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| Conversion price: | $94.9316
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| Conversion rate: | 10.534
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| Call options: | None
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| Put options: | None
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| Pricing date: | Dec. 7
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| Settlement date: | Dec. 12
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| Distribution: | Rule 144A
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| Talk: | Fixed coupon of 2.5%, fixed initial conversion premium of 20%, reoffer price of 98 to 98.25
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| Stock symbol: | NYSE: NEP
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| Stock price: | $79.11 at market close Dec. 7
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| Market capitalization: | $6.52 billion
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