NextEra To Sell $600 Million In Equity Units To BofA's Merrill Lynch
First Published Tuesday, 1st May 2012 02:27 pm - © 2012 Dow Jones
Dow Jones NEWSWIRES
NextEra Energy Inc. (NEE) agreed to sell $600 million in equity units to Bank of America Corp.'s (BAC) Merrill Lynch unit as the renewable-energy company looks to build its general funds.
Each equity unit will be issued at $50, and will consist of 5% of a $1,000 NextEra Capital Holdings Inc. debenture due in June 2017 and a contract to buy NextEra common stock in the future. The equity units will pay out a rate of 5.6% in distributions, consisting of interest on the debt and payments under the stock purchase contract.
Each stock purchase contract will require the holder to buy NextEra common stock for cash, based on a price range of $64.35 to $77.22, completing the purchase no later than June 1, 2015.
NextEra, which owns Florida Power & Light and is the largest U.S. renewable-energy generator, has benefited from a recovery in power demand and has signed a record number of wind-power purchase agreements with utilities ahead of expiring federal subsidies.
However, like other companies with units that compete on price in the open market, NextEra has faced challenges from low natural gas and power prices at its wholesale power business.
Last week, the company said its first-quarter earnings surged as its growth projects helped boost revenue.
Shares were down 2.1% at $62.99. The stock is up 3.5% so far this year.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; email@example.com