Florida Power & Light accepts early tenders for $400 million bonds; pricing set

By Susanna Moon

Chicago, Sept. 25 – Florida Power & Light Co., a wholly owned subsidiary of NextEra Energy, Inc., announced the early results in its tender offer for up to $400 million of 10 series of first mortgage bonds.

The company will accept for purchase all of the notes tendered with an acceptance priority level of one through seven, notes with an acceptance priority level of eight will be purchased using a proration factor of about 4.57% and no other notes will be purchased in the offer, according to a press release.

Because the tender offer has been oversubscribed so far, the company said it expects to purchase no more notes tendered in the offer.

Holders had tendered the following amount of bonds, listed in order of priority acceptance level, as of 5 p.m. ET on Sept. 24, the early tender date:

• $29,305,000 of the $200 million of 5.85% first mortgage bonds due Feb. 1, 2033;

• $27,556,000 of the $300 million of 5.95% first mortgage bonds due Oct. 1, 2033;

• $80,839,000 of the $300 million of 6.2% first mortgage bonds due June 1, 2036;

• $81,828,000 of the $500 million of 5.625% first mortgage bonds due April 1, 2034;

• $35,569,000 of the $240 million of 5.65% first mortgage bonds due Feb. 1, 2035;

• $70,414,000 of the $300 million of 5.4% first mortgage bonds due Sept. 1, 2035;

• $69,479,000 of the $300 million of 5.85% first mortgage bonds due May 1, 2037;

• $110,933,000 of the $400 million of 5.65% first mortgage bonds due Feb. 1, 2037;

• $213,246,000 of the $600 million of 5.95% first mortgage bonds due Feb. 1, 2038; and

• $112,441,000 of the $500 million of 5.96% first mortgage bonds due April 1, 2039.

The tender offer had been set to end at 11:59 p.m. ET on Oct. 8. Tendered notes may no longer be withdrawn, as of the early tender deadline. The offer began on Sept. 11.

When the offer was announced, the company said it would accept for purchase notes tendered before the early deadline with a higher acceptance priority level before those with a lower priority level, and all notes tendered after the early date with a higher priority level before those tendered after the early tender date with a lower priority level.

But even if the offer had not been fully subscribed by the early deadline, notes tendered before the withdrawal deadline would have been accepted for purchase in priority to those tendered after the early date even if the notes tendered after the early date had a higher priority level than those tendered prior to the early date.

Pricing terms

Pricing was set at 11 a.m. ET on Sept. 25 using the 3% Treasury notes due May 15, 2045 plus a spread of 110 basis points:

• 5.85% first mortgage bonds due Feb. 1, 2033 for a total purchase price of $1,218.42;

• 5.95% first mortgage bonds due Oct. 1, 2033 for a total purchase price of $1,236.87;

• 6.2% first mortgage bonds due June 1, 2036 for a total purchase price of $1,294.10;

• 5.625% first mortgage bonds due April 1, 2034 for a total purchase price of $1,199.36;

• 5.65% first mortgage bonds due Feb. 1, 2035 for a total purchase price of $1,208.56;

• 5.4% first mortgage bonds due Sept. 1, 2035 for a total purchase price of $1,178.81;

• 5.85% first mortgage bonds due May 1, 2037 for a total purchase price of $1,252.40;

• 5.65% first mortgage bonds due Feb. 1, 2037 for a total purchase price of $1,222.23;

• 5.95% first mortgage bonds due Feb. 1, 2038 for a total purchase price of $1,272.36; and

• 5.96% first mortgage bonds due April 1, 2039 for a total purchase price of $1,282.48.

As previously noted, the total purchase price includes an early tender premium of $50 for each $1,000 principal amount of notes tendered by the early tender deadline.

Those who tendered after the early deadline would have received the total amount less the early premium, had the offer not been oversubscribed by the early deadline.

The company also will pay accrued interest up to but excluding the settlement date of Sept. 28 for early tendered notes and of Oct. 9 for remaining tenders.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) is the dealer manager. D.F. King & Co., Inc. (877 732-3619, 212 269-5550 or fpl@dfking.com) is the information agent.

Florida Power & Light is a Juno Beach, Fla.-based electric utility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.