NextEra Energy Capital Holdings announces dates for remarketing of its Series M Debentures due Sept. 1, 2027

Rhea-AI Summary

NextEra Energy Capital Holdings (NYSE: NEE) has announced plans to remarket its Series M Debentures due September 1, 2027, currently outstanding at $2.0 billion. The remarketing will take place on July 29, 2025, with two additional business days if necessary.

The debentures, originally issued as part of NextEra Energy's Corporate Units in September 2022, are guaranteed by parent company NextEra Energy. Upon successful remarketing, the interest rate will be reset, and proceeds will be used to purchase U.S. Treasury securities portfolio. The remarketing fee will not exceed 0.25% of the sum of the Remarketing Treasury Portfolio Purchase Price plus the Separate Debentures Purchase Price.

Citigroup Global Markets, Goldman Sachs & Co., and Mizuho Securities USA are serving as remarketing agents for this transaction.

Insights

Fixed Income Analyst

NextEra's $2 billion debenture remarketing could optimize financing costs ahead of September 2025 purchase obligations.

NextEra Energy Capital Holdings is proceeding with the remarketing of $2.0 billion in Series M Debentures due September 2027. This financial maneuver represents a standard but critical component of the company's Corporate Units structure originally issued in September 2022.

The remarketing, scheduled for July 29, 2025, will reset the interest rate on these debt instruments to market-appropriate levels. The proceeds will be used to purchase U.S. Treasury securities that will replace the debentures as collateral for the holders' obligation to purchase NextEra Energy common stock on September 1, 2025.

This transaction effectively transitions the Corporate Units from debt-backed to Treasury-backed as they approach their final settlement date. The remarketing fee is capped at 0.25% of the portfolio purchase price, indicating efficient execution costs.

The remarketing signals NextEra's proactive management of its capital structure as it prepares for the mandatory settlement of these equity units. This is a routine but necessary step for Corporate Units structures approaching their settlement date. The fact that Citigroup, Goldman Sachs, and Mizuho are serving as remarketing agents suggests strong financial market support for this transaction.

The successful remarketing will provide clarity on NextEra's forward interest expenses for these instruments while ensuring a smooth transition to the equity settlement phase of the Corporate Units in September.

JUNO BEACH, Fla., July 21, 2025 /PRNewswire/ -- NextEra Energy Capital Holdings, Inc. today announced that it will conduct a remarketing of its Series M Debentures due Sept. 1, 2027 (the "Debentures") (CUSIP No. 65339KCL2), which are currently outstanding in the aggregate principal amount of $2.0 billion, on July 29, 2025, (and, if necessary, on the following two business days). The Debentures were originally issued as part of NextEra Energy, Inc.'s Corporate Units (CUSIP No. 65339F713) on Sept. 19, 2022 (the "Corporate Units"), in conjunction with a Purchase Contract Agreement, dated as of Sept. 1, 2022 (the "Purchase Contract Agreement"). The Debentures are guaranteed by NextEra Energy Capital Holdings' parent company, NextEra Energy, Inc. (NYSE: NEE).

If the remarketing is successful, the interest rate on the Debentures will be reset to a rate that will have enabled the Debentures to have been remarketed at a price equal to or greater than the sum of the Remarketing Treasury Portfolio Purchase Price, the Separate Debentures Purchase Price and the Remarketing Fee (as those terms are defined in the Officer's Certificate, dated Sept. 19, 2022, creating the terms of the Debentures under the Indenture, dated as of June 1, 1999, as amended). The reset interest rate and the subsequent interest payment dates will be established on the date of the successful remarketing and become effective on the third business day following the date of such successful remarketing. The Remarketing Fee will not exceed 0.25% of the sum of the Remarketing Treasury Portfolio Purchase Price plus the Separate Debentures Purchase Price.

Upon a successful remarketing, the proceeds of the remarketing of the Debentures that are components of the Corporate Units will be used to purchase a portfolio of U.S. Treasury securities (or principal or interest strips thereof), or if U.S. Treasury securities (or principal or interest strips thereof) that are to be included in such portfolio have a yield that is less than zero, then, at NextEra Energy Capital Holdings' option, such portfolio will consist of an amount in cash equal to the aggregate principal amount at maturity of the applicable U.S. Treasury securities (or principal or interest strips thereof), which will be substituted for the Debentures and pledged to secure the obligation of the holders of the Corporate Units to purchase NextEra Energy common stock on Sept. 1, 2025, pursuant to the Purchase Contract Agreement. The proceeds from the remarketing of any Debentures that are not a component of Corporate Units and whose holders elect to include some or all of those Debentures in the remarketing will be paid to such holders.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Mizuho Securities USA LLC are the remarketing agents.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities to which this communication relates in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 

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. 

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SOURCE NextEra Energy, Inc.

FAQ

What is the purpose of NextEra Energy's (NYSE: NEE) Series M Debentures remarketing?

The remarketing aims to reset the interest rate on the $2.0 billion Series M Debentures, with proceeds being used to purchase U.S. Treasury securities portfolio that will secure Corporate Units holders' obligation to purchase NextEra Energy common stock.

When will NextEra Energy (NYSE: NEE) conduct the remarketing of Series M Debentures?

The remarketing will occur on July 29, 2025, with two additional business days available if necessary.

What is the current outstanding amount of NextEra Energy's Series M Debentures?

The Series M Debentures are currently outstanding in the aggregate principal amount of $2.0 billion.

Who are the remarketing agents for NextEra Energy's Series M Debentures?

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and Mizuho Securities USA LLC are serving as the remarketing agents.

What is the maximum remarketing fee for NextEra Energy's Series M Debentures?

The remarketing fee will not exceed 0.25% of the sum of the Remarketing Treasury Portfolio Purchase Price plus the Separate Debentures Purchase Price.