By Devika Patel
Knoxville, Tenn., June 22 – NextEra Energy Partners, LP arranged a $550 million private placement of 4.5% series A convertible preferred units on June 20, according to an 8-K filed with the Securities and Exchange Commission.
The company will sell the units at $39.2253 apiece. Quarterly dividend payments will be made at $0.4413 per unit each quarter in cash, in kind or a combination.
The preferred units may be converted into common units initially on a one-for-one basis.
On this basis, the units convert at an initial 15% premium to the 45-day volume weighted average price of $39.23.
The investors are Nasa A Holdings LP, Nasa B Holdings LP and Nasa Co-invest Holdings LP, affiliates of funds and accounts managed by BlackRock Energy and Power Infrastructure Group and KKR Flatirons Aggregator LP, an affiliate of Kohlberg Kravis Roberts & Co. LP.
Proceeds will be used by NextEra Energy Operating Partners, LP to acquire assets and for general partnership purposes.
NextEra Energy Partners is a Juno Beach, Fla.-based limited partnership formed by NextEra Energy, Inc. to own, operate and acquire contracted clean energy projects through its limited partner interest in NextEra Energy Operating Partners, LP.
| Issuer: | NextEra Energy Partners, LP
|
| Issue: | Series A convertible preferred units
|
| Amount: | $550 million
|
| Price: | $39.2253
|
| Dividends: | 4.5%, or $0.4413 per unit each quarter
|
| Conversion rate: | One for one
|
| Initial conversion premium: | 15%
|
| Investors: | Nasa A Holdings LP, Nasa B Holdings LP and Nasa Co-invest Holdings LP, affiliates of funds and accounts managed by BlackRock Energy and Power Infrastructure Group and KKR Flatirons Aggregator LP
|
| Pricing date: | June 20
|
| Settlement date: | Dec. 31
|
| Distribution: | Private placement
|
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