NextEra Energy Resets Series M Debentures Interest Rate to 4.685%

NextEra Energy Capital Holdings has successfully completed the remarketing of approximately $2.0 billion in Series M Debentures, resetting the interest rate to 4.685% per annum. The debentures were originally issued in 2022 as part of equity units by NextEra Energy, which guarantees them. The first payment under the new rate is set to commence on September 1, 2025. This move optimizes NextEra Energy's capital structure and financial obligations.

NextEra Energy Capital Holdings, Inc. (NEE Capital) has successfully completed the remarketing of approximately $2.0 billion in Series M debentures, resetting the interest rate to 4.685% per annum. The debentures were originally issued in 2022 as part of equity units by NextEra Energy, Inc. (NEE), which guarantees them. The first payment under the new rate is set to commence on September 1, 2025. This move optimizes NextEra Energy's capital structure and financial obligations.

The debentures, with an aggregate principal amount of $1.99 billion, were remarketed by NEE Capital and fully and unconditionally guaranteed by NEE. The remarketing process involved the sale of Series M debentures due September 1, 2027, which were originally issued in September 2022. The transaction was advised by Hunton Andrews Kurth LLP, with a team that included Steven C. Friend, Michelle G. Chan, Jingyi “Alice” Yao, Gabrielle Kraushaar, and Catherine I. Bulger. Tax advice was provided by Robert McNamara and William Freeman [1].

NextEra Energy, the parent company of NEE Capital, is a holding company that conducts its operations primarily through its wholly-owned subsidiaries, including Florida Power & Light Company (FPL), NextEra Energy Resources, LLC (NEER), and NextEra Energy Transmission, LLC. NEER is engaged in various energy-related activities, including the production of electricity from clean and renewable sources, battery storage projects, and energy-related commodity marketing and trading.

The remarketing of the debentures allows NextEra Energy to manage its debt obligations more effectively, potentially leading to improved financial performance. By resetting the interest rate to 4.685%, the company aims to optimize its capital structure and reduce its financial burden.

References:
[1] https://www.hunton.com/news/hunton-advises-on-nextera-energy-capital-holdings-inc-s-1-99b-debentures-remarketing