QUANTUMONLINE.COM SECURITY DESCRIPTION: NextEra Energy Capital Holdings Inc., 5.65% Series N Junior Subordinated Debentures due 3/1/2079 issued in $25 denominations, redeemable at the issuer's option on or after 6/15/2024 at $25 per note plus accrued and unpaid interest, and maturing 3/1/2079 . The Company may redeem the Junior Subordinated Debentures in whole but not in part before 6/15/2024 at 100% of their principal amount plus accrued and unpaid interest, if certain changes in tax laws, regulations or interpretations occur; or in whole but not in part before 6/15/2024 at 102% of their principal amount plus accrued and unpaid interest if a rating agency makes certain changes in the equity credit methodology for securities such as the Junior Subordinated Debentures.
Interest distributions of 5.65% per annum ($1.4125 per annum or $0.353125 per quarter) will be paid quarterly on 3/1, 6/1, 9/1, & 12/1 to holders of record on the record date that will be one day prior to the payment date. (NOTE: the ex-dividend date is one business day prior to the record date). The company has the right, at any time, to defer dividend payments for up to 10 consecutive years without giving rise to an event of default (but not beyond the maturity date).
Distributions paid by these debt securities are interest and as such 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.
The Notes are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. This security was rated as Baa2 by Moody’s and BBB by S&P at the date of its IPO.
The Notes are unsecured and subordinated obligations of the company and will rank junior to all existing and future unsecured and unsubordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
