NextEra announces offering of $300M convertible senior notes

Written By: Katherine Demetre
September 7, 2017

nextera senior unsecured notes senior notes

On Sept. 6, 2017, NextEra Energy Partners announced an offering of $300 million in aggregate principal amount of its convertible senior notes due 2020 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

Per the company, holders may convert all or a portion of their notes at any time prior to their maturity date in principal amounts equal to $1,000 or an integral multiple thereof into NextEra Energy Partners common units and cash in lieu of any fractional common unit at a price to be determined, subject to customary conditions. The notes would be fully and unconditionally guaranteed on a senior basis by NextEra Energy Operating Partners, LP, a direct subsidiary of NextEra Energy Partners.

NextEra Energy Partners stated that they intend to use a portion of the net proceeds from their offering to fund the potential future acquisition of renewable energy assets either from NextEra Energy Resources, LLC, or from third parties, as well as the initial cost of the capped call transaction described below. Any remaining proceeds are expected to be used for general partnership purposes.