NextEra Energy plans $2 billion equity units public offering

NextEra Energy Inc. (NYSE: NEE) announced it intends to sell $2 billion of equity units in a public offering, according to a company press release. The company expects to grant underwriters an option to purchase up to an additional $300 million of equity units to cover over-allotments.

Each equity unit will be issued with a stated amount of $50 and will consist of a contract to purchase NextEra Energy common stock in the future, plus undivided beneficial ownership interests in two series of debentures issued by NextEra Energy Capital Holdings Inc., a wholly owned subsidiary. The debentures include a Series P Debenture due Feb. 15, 2031, and a Series Q Debenture due Feb. 15, 2034, each with a principal amount of $1,000. NextEra Energy will guarantee the debentures.

In approximately three years, equity unit holders will be required to purchase NextEra Energy common stock for cash, based on a range of 0% to 25% premium over the New York Stock Exchange closing price of NextEra Energy common stock on Feb. 26, 2026. Holders must complete the stock purchase by no later than Feb. 15, 2029, with the required purchase price determined based on the average closing price over the 20 consecutive trading days ending Feb. 12, 2029.

The net proceeds will be added to the general funds of NextEra Energy Capital Holdings, which expects to use the funds for investments in energy and power projects and other general corporate purposes, including repaying a portion of outstanding commercial paper obligations.

Wells Fargo Securities, BofA Securities, Citigroup and Mizuho will serve as joint book-running managers for the offering.

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