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NextEra Energy, Inc., 5.599% Equity Units due 6/01/2015
Ticker Symbol: NEXWU* CUSIP: 65339F705 Exchange: OTOTC
* NOTE: This security is no longer trading as of 6/01/2015
Security has been Called for: Monday, June 1, 2015
The company does not intend to apply to list the Corporate Units on a securities exchange.
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QUANTUMONLINE.COM SECURITY DESCRIPTION: NextEra Energy, Inc., 5.599% Equity Units due 6/01/2015, stated amount $50 per unit, initially consisting of Corporate Units which include a stock purchase contract and a 1/20th interest in a 1.70% Series E Debenture due 6/1/2017 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 6/1/2015 and pays a contract adjustment rate of 3.899% per annum. The stock purchase settlement rate will be 0.6475 shares per unit if the then current market price is equal to or greater than $77.22 and 0.7770 shares per unit if the market price is equal to or less than $64.35. 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 4/30/2012 was $64.35 per share. The Series E debenture is due 6/1/2017 and is subject to reset and remarketing between 12/1/2014 and the ninth business day prior to 6/1/2015. The Corporate Units pay quarterly distributions of 5.599% ($2.7995) 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). The company has the right to defer the payment of contract adjustment payments until no later than the purchase contract settlement 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 Series E 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 Series E debentures and to later recreate Corporate Units. The Series E debentures are unsecured and unsubordinated and rank equally with the company's other unsecured and unsubordinated 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 |
OTOTCn
OTOTCps
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5.60%
$2.7995
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$50.00
$50.00
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Called for
6/01/2015
6/01/2017
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Baa1
BBB
5/04/2015
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0.6475@$77.22+
0.7770@$64.35-
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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 - 5/2/2012 - 12.00 Million Units @ $50.00/unit.
Link to IPO Prospectus
Market Value $600.0 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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