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NextEra Energy, Inc., 6.123% Equity Units due 9/1/2019
Ticker Symbol: NEE-R* CUSIP: 65339F820 Exchange: NYSE
* NOTE: This security is no longer trading as of 9/01/2019
QUANTUMONLINE.COM SECURITY DESCRIPTION: NextEra Energy, Inc., 6.123% Equity Units due 9/2019, stated amount $50 per unit, initially consisting of Corporate Units which include a stock purchase contract and a 5% undivided beneficial ownership interest in a 1.650% Series I Debenture due 9/1/2021 with a principal amount of $1,000. 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 9/1/2019 and pays a contract adjustment rate of 4.473% per annum. The stock purchase settlement rate will be 0.3134 shares per unit if the then current market price is equal to or greater than $159.54 and 0.3918 shares per unit if the market price is equal to or less than $127.63. 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 8/2/2016 was $127.63 per share The stock purchase contract may be settled any time at the holder’s option and the company will deliver 0.3134 shares of common stock for each purchase contract. The debenture is due 9/1/2021 and is subject to reset and remarketing on the fifth business day prior to 3/1/2019 and ending on and including the ninth business day preceding 9/1/2019. The Corporate Units pay quarterly distributions of 6.123% ($3.0615) per annum on 3/1, 6/1, 9/1 & 12/1 to holders of record on the record date that will be one business day prior to the payment dates while the securities remain in book-entry form (NOTE: the ex-dividend date is one business day prior to the record date). The company has the right, at any time, to defer distribution payments (but not beyond the maturity date). 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. The debentures are pledged as collateral to secure the holder's obligations under the stock purchase contract. 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 debenture and to later recreate Treasury Units. The debentures 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..
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Stock Exchange |
Cpn Rate Ann Amt |
LiqPref CallPrice |
Call Date Matur Date |
Moodys/S&P Dated |
Conversion Shares@Price |
Distribution Dates |
15% Tax Rate |
NYSE
Chart
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6.12%
$3.06
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$50.00
$50.00
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9/01/2019
9/01/2019
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NR
BBB
4/03/2019
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0.3134@$159.54+
0.3918@$127.63-
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3/1, 6/1, 9/1 & 12/1
Click for MW ExDiv Date
Click for Yahoo ExDiv Date
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No
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Go to Parent Company's Record (NEE)
Notes: Aug. 3,2016 -- NextEra Energy, Inc. (NEE) Wednesday said it has agreed to sell $1.50 billion of equity units to Goldman, Sachs & Co., Credit Suisse and Mizuho Securities. The net proceeds are expected to be $1.45 billion and will be added to the general funds of NextEra Energy Capital Holdings. The transaction is expected to close on Aug. 8, 2016.The clean energy company plans to issue equity unit in a stated amount of $50 and each equity unit will consist of a contract to purchase NextEra Energy common stock in the future and a 5 percent undivided beneficial ownership interest in a NextEra Energy Capital Holdings, Inc. debenture due Sept. 1, 2021, to be issued in the principal amount of $1,000. The debentures will be guaranteed by NextEra Energy Capital Holdings' parent company, NextEra Energy, Inc. Total annual distributions on the equity units will be at the rate of 6.123 percent. Each stock purchase contract will require the holder to purchase NextEra Energy common stock for cash, based on a per-share price range of $127.63 to $159.54 that represents 25 percent premium at the higher end.
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IPO - 8/2/2016 - 30.00 Million Units @ $50.00 /unit.
Link to IPO Prospectus
Previous Ticker Symbol: NEXRU Changed: 8/31/2016
Market Value $1.5 Billion
Company's Online Information Links
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Company's Online SEC EDGAR Filings |
Company's Email Address Links |
Address and Phone Numbers |
Address: 700 Universe Blvd., Juno Beach, FL 33408 |
Main Phone Number |
561-694-4000 |
Fax Number |
561-691-7272 |
Investor Relations
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561-694-4697
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Toll Free Phone Number |
800-222-4511 |
CEO - James L. Robo |
CFO - John W. Ketchum |
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