NextEra Energy talks $500 million three-year convertible notes at par-100.5, up 20%

By Abigail W. Adams

Portland, Me., June 14 – NextEra Energy Partners LP plans to price $500 million of three-year convertible notes after the market close on Monday with price talk for a fixed coupon of 0%, a fixed initial conversion premium of 20% and a reoffer price of par to 100.5, according to a market source.

Morgan Stanley & Co. LLC is the bookrunner for the Rule 144A offering.

The notes are non-callable.

The convertibles will be settled in cash up to the principal amount with any excess to be settled in cash, common units or a combination of both at the company’s option.

The notes will be guaranteed by subsidiary NextEra Energy Operating Partners LP.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and to fund a portion of the previously announced acquisition of a portfolio of wind projects.

NextEra Energy is a limited partnership that manages clean energy projects.

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