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NextEra Energy, Inc., 7.00% Equity Units due 9/1/2013
Ticker Symbol: NEEEU* CUSIP: 65339F507 Exchange: OTOTC
* NOTE: This security is no longer trading as of 9/03/2013
Security has been Called for: Tuesday, September 3, 2013
Aug. 29, 2013 // -- NextEra Energy, Inc. (NYSE: NEE) today announced the settlement rate for the stock purchase contracts that are components of equity units that it issued in September 2010. Holders of the equity units will receive 0.7387 shares of NextEra Energy common stock for each stock purchase contract that they hold, with cash to be paid in lieu of any fractional shares. The settlement rate is based upon the average of the closing price per share of NextEra Energy common stock on the New York Stock Exchange for the 20 consecutive trading days ending on Aug. 28, 2013. Consequently, on Sept. 3, 2013, each holder of the equity units on that date will, following payment of $50.00 for each unit which it holds, receive 0.7387 shares of NextEra Energy common stock for each such unit. The holders' obligations to make such payments will be satisfied with proceeds generated by the successful remarketing on Aug. 9, 2013 of the NextEra Energy Capital Holdings, Inc. debentures that formerly constituted a component of the equity units, except for any holders that may have elected to make separate cash settlements of their stock purchase contracts. Upon settlement of all outstanding stock purchase contracts, NextEra Energy will receive $402.434 million in exchange for approximately 5.95 million shares of common stock. On Sept. 3, 2013, each equity unit holder of record on Aug. 30, 2013, will receive the final quarterly cash distribution of $0.875 payable per equity unit.
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QUANTUMONLINE.COM SECURITY DESCRIPTION: NextEra Energy, Inc., formerly FPL Group Inc., 7.00% Equity Units, stated amount $50 per unit, initially consisting of Corporate Units which include a stock purchase contract and a 1/20th or 5% interest in a 1.90% Series D debenture issued by FPL Group Capital Inc. due 9/1/2015 with a principal amount of $1000. 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 9/1/2013 and pays a contract adjustment rate of 5.10% per annum. The stock purchase settlement rate will be 0.7270 shares per unit if the then current market price is equal to or greater than $68.78 and 0.9088 shares per unit if the market price is equal to or less than $55.02. 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 9/14/2010 was $55.02 per share. The debenture is due 9/1/2015 and is subject to reset and remarketing on the third business day prior to 3/1/2013 and extending to the 9th business day prior to 9/1/2013. The Corporate Units pay quarterly distributions of 7.00% ($3.50) per annum on 3/1, 6/1, 9/1 & 12/1 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 is at least 2 business days prior to the record date). Distributions paid by these securities are derived from interest paid on the underlying debt securities and therefore are NOT eligible for the 15% 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 debentures and to later recreate Corporate Units. The debentures are unsecured and rank equally with the company's other unsecured and unsubordinated obligations. 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 |
OTOTCn
OTOTCps
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7.00%
$3.5
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$50.00
N/A
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Called for
9/03/2013
9/01/2015
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Baa1
BBB+
3/05/2013
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0.7270@$68.78+
0.9088@$55.02-
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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)
IPO - 9/16/2010 - 7.00 Million Units @ $49.25/unit.
Link to IPO Prospectus
Market Value $350.0 Million
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 - Lewis Hay III |
CFO - Moray P. Dewhurst |
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