NextEra Energy Partners (NEP) said pre-market Monday that it has completed the placement and has closed the sale of $300 million of its 1.50% convertible senior notes due 2020 in a private placement to qualified institutional buyers.
“This offering further demonstrates NextEra Energy Partners’ ability to tap into new sources of capital and is expected to enable the partnership to complete our growth funding for the year,” CEO Jim Robo was quoted in a statement as saying.
The notes have the potential to convert into equity at a 25% premium to the Sept. 6, closing price, and the inclusion of a call spread is designed to allow NextEra Energy Partners to get additional consideration in the future should the unit price increase between 25% and 50%.
“NextEra Energy Partners offers what we believe to be a superior investor value proposition, with clear visibility to grow limited partner unit distributions by 12 to 15% through at least 2022,” he added.
The notes will mature on Sept. 15, 2020, and are fully and unconditionally guaranteed on a senior basis by NextEra Energy Operating Partners, a direct unit of NextEra Energy Partners.