NextEra Energy Inc. to issue stock and enter into forward sales agreements to raise $1.5 billion for TTHC acquisition

Written By: Stratton Report
November 1, 2016

Next Era

On November 1, NextEra Energy, Inc. announced plans to offer 12 million shares of its common stock in a registered underwritten offering and to enter into forward sale agreements with financial institutions as forward counterparties.

Closing of this offering is expected to occur on or about Nov. 7, 2016. In connection with this offering, the underwriters have been granted an option to purchase up to an additional 1,800,000 shares of NextEra Energy’s common stock solely to cover over-allotments, if any.

To the extent that the underwriters exercise the over-allotment option, NextEra Energy expects to enter into additional forward sale agreements. Settlement of the forward sale agreements is expected to occur no later than Nov. 1, 2017.

The net proceeds from the sale of the common stock by NextEra Energy to the forward counterparties upon settlement of the forward sale agreements is expected to be approximately $1.5 billion.

NextEra Energy will add any net proceeds that it receives upon settlement of the forward sale agreements and any additional forward sale agreements to its general funds which it will use in part, to fund the merger consideration of approximately $2.4 billion under an agreement for an affiliate of NextEra Energy to merge with Texas Transmission Holdings Corporation. TTHC owns an approximately 20 percent indirect interest in Oncor Electric Delivery Company LLC.