NextEra Energy Inc.'s Proposed $1.5 Billion Equity Units Rated 'BBB'

NEW YORK (S&P Global Ratings) Oct. 29, 2024--S&P Global Ratings today assigned its 'BBB' issue-level rating to Juno Beach, Fla.-based NextEra Energy Inc.'s (NEE) proposed $1.5 billion equity units, which include a purchase contract that obligates the owner to purchase NEE's common stock by Nov. 1, 2027, and a remarketable series O debenture issued by subsidiary NextEra Energy Capital Holdings Inc. due Nov. 1, 2029. We rate these securities two notches below our 'A-' issuer credit rating on NEE. Our 'BBB' issue-level rating reflects the equity units' deferability and subordination. All our other ratings on NEE are unchanged. We assign high equity content (100% equity) to the equity units based on the proposed terms. The rating on the equity units

...October 29, 2024 NEW YORK (S&P Global Ratings) Oct. 29, 2024--S&P Global Ratings today assigned its '###' issue-level rating to Juno Beach, Fla.-based NextEra Energy Inc.'s (NEE) proposed $1.5 billion equity units, which include a purchase contract that obligates the owner to purchase NEE's common stock by Nov. 1, 2027, and a remarketable series O debenture issued by subsidiary NextEra Energy Capital Holdings Inc. due Nov. 1, 2029. We rate these securities two notches below our 'A-' issuer credit rating on NEE. Our '###' issue-level rating reflects the equity units' deferability and subordination. All our other ratings on NEE are unchanged. We assign high equity content (100% equity) to the equity units based on the proposed terms. The rating on the equity units applies to NextEra's obligation to issue common shares under the forward contract. The company intends to use the net proceeds to fund investments in energy and power projects and for general use, including repayment of outstanding...

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