NextEra Energy announces settlement rate for corporate units issued in September 2022

Rhea-AI Summary

NextEra Energy (NYSE: NEE) has announced the settlement rate for stock purchase contracts within corporate units (NYSE: NEE PRR) issued in September 2022. Holders will receive 0.5705 shares of NextEra Energy common stock for each stock purchase contract upon payment of $50.00 per unit on September 2, 2025.

Upon settlement of all outstanding contracts, NextEra Energy will receive approximately $2.0 billion in exchange for about 22.8 million shares of common stock. Corporate unit holders of record on August 29, 2025, will receive a final quarterly cash distribution of $0.86575 per unit.

Positive

• Company to receive significant capital injection of $2.0 billion
• Successful remarketing of debentures completed on August 1, 2025

Negative

• Issuance of approximately 22.8 million new shares will result in dilution

Insights

Corporate Finance Specialist

NextEra completing $2B financing transaction through conversion of corporate units to 22.8M common shares, as previously structured.

This announcement details the mechanical completion of a pre-planned financing arrangement for NextEra Energy. The company is finalizing the settlement of corporate units issued in 2022, where unit holders will receive 0.5705 shares of NEE common stock for each unit, in exchange for their $50.00 payment obligation per unit.

The significance here is the scale of the transaction - NextEra will receive approximately $2.0 billion in capital while issuing about 22.8 million new shares. This represents a modest dilution to existing shareholders but was already anticipated as part of the company's long-term financing strategy.

These corporate units represent a sophisticated financing instrument that combines debt and equity components. The debt portion (debentures) was successfully remarketed on August 1, 2025, generating proceeds that satisfy the unit holders' payment obligations. This structure allowed NextEra to secure favorable financing terms while deferring the equity dilution until now.

Unit holders will also receive their final quarterly cash distribution of $0.86575 per unit plus remaining proceeds from the remarketing. This transaction demonstrates NextEra's continued access to capital markets to support its extensive infrastructure development activities across both its regulated utility (FPL) and renewable energy businesses.

JUNO BEACH, Fla., Aug. 28, 2025 /PRNewswire/ -- NextEra Energy, Inc. (NYSE: NEE) today announced the settlement rate for the stock purchase contracts that are components of corporate units (NYSE: NEE PRR) issued in September 2022. Holders of the corporate units will receive 0.5705 shares of NextEra Energy common stock for each stock purchase contract 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. 27, 2025.

Consequently, on Sept. 2, 2025, each holder of the corporate units on that date will receive, following the holder's payment to NextEra Energy of $50.00 for each unit held, 0.5705 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. 1, 2025, of the NextEra Energy Capital Holdings, Inc. debentures that formerly constituted a component of the corporate units.

Upon settlement of all outstanding of these stock purchase contracts, NextEra Energy will receive approximately $2.0 billion in exchange for approximately 22.8 million shares of common stock.

On Sept. 2, 2025, each corporate unit holder of record on Aug. 29, 2025, will receive the final quarterly cash distribution of $0.86575 payable per corporate unit. In addition, holders of corporate units as of Sept. 2, 2025, will receive the remaining amounts from the remarketing described above.

NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is one of the largest electric power and energy infrastructure companies in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns one of the largest energy infrastructure development companies in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/nextera-energy-announces-settlement-rate-for-corporate-units-issued-in-september-2022-302540942.html

SOURCE NextEra Energy, Inc.

FAQ

What is the settlement rate for NextEra Energy's (NEE) corporate units issued in September 2022?

Holders will receive 0.5705 shares of NextEra Energy common stock for each stock purchase contract, upon payment of $50.00 per unit.

How much capital will NextEra Energy (NEE) receive from the corporate units settlement?

NextEra Energy will receive approximately $2.0 billion in exchange for issuing about 22.8 million shares of common stock.

What is the final quarterly cash distribution for NEE corporate unit holders?

Corporate unit holders of record on August 29, 2025, will receive a final quarterly cash distribution of $0.86575 per unit on September 2, 2025.

When will the NextEra Energy corporate units settlement take place?

The settlement will take place on September 2, 2025, when holders will receive their shares after making the required $50.00 payment per unit.