NextEra Energy, Inc. 7.234% Equity Units Due 11/1/2029 (NEE-T)
NYSE · · CUSIP 65339F119
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Security Details

Coupon Rate
7.23%
Liquidation Preference
$50.00
Call Price
$50.00
Call / Redemption Date
—
Maturity Date
11/1/2029
Distribution Period
Q
Rate Type
Fixed
Annual Distribution
3.617
Distribution Dates
2/1, 5/1, 8/1 & 11/1
Credit Ratings
Moody's NR · S&P NR (11/4/2024)
Conversion
0.4827@ $103.58+
Tax-Advantaged Dividends
No

Security Profile

Security Type
Mandatory Convertible Security »
CUSIP
65339F119
IPO
10/29/2024 · $50.00/unit
Parent Company
NextEra Energy, Inc (NEE)
Business: NextEra Energy, Inc. 7.234% Equity Units stated amount $50 per unit, initially consisting of Equity Units which include a stock purchase contract and a 5% undivided beneficial ownership interest in a Series O Debenture due 11/1/ 2029, issued in the principal amount of $1,000 by NextEra Energy Capital Holdings, Inc. <p> The stock purchase contract requires the holder to purchase for $50 a variable number of shares of NextEra Energy, Inc. (NYSE: NEE) common stock no later than 11/1/2029 and pays a contract adjustment rate of 2.599% per annum. The stock purchase settlement rate will be 0.4827 shares per unit if the then current market price is equal to or greater than $103.58 and 0.6034 shares per unit if the market price is equal to or less than $82.87. For market prices between those values the settlement rate will be $50 divided by the market value. Prior to the IPO of this security, the last reported sale price of the common stock on 10/28/2024 was $82.87 per share. The stock purchase contract may be settled any time at the holder’s option and the company will deliver 0.4827 shares of common stock for each purchase contract. </p> The Equity Units pay quarterly distributions of 7.232% ($3.617 per annum or $0.90425 per quarter) will be paid quarterly on 2/1, 5/1, 8/1 & 11/1 to holders of record on the record date which is one business day prior to the payment date while the securities remain in book-entry form (NOTE: the ex-dividend date the record date). <p> Distributions paid by these securities are derived from interest paid on the underlying debt securities and therefore are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. <p> The Series O Debenture will initially bear interest at a rate of 4.635% per year and is due 11/01/2029. The Series O Debentures are subject to reset and remarketing on the fifth business day preceding 05/01/2027 and ending on 11/01/2027. </p> The holder has the right at any time to convert the Corporate Units to Treasury Units by the substitution of a specified zero-coupon U.S. Treasury security for the Notes and to later recreate Corporate Units.<p> This security was not rated by Moody’s or S&P at the time of its IPO. The Equity Units are unsecured and rank equally with the company's other unsecured senior indebtedness. See the IPO prospectus for extensive additional information on the equity units and their mandatory conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.

Company Contact

CEO
John W. Ketchum
CFO
Brian Bolster
Headquarters
700 Universe Blvd., Juno Beach, FL 33408
Phone
561-694-4000 · Toll-Free 800-222-4511
Fax
561-691-7272
Investor Relations
561-694-4697 · investors@nexteraenergy.com
SEC EDGAR Filings
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