NextEra Energy issues $2 billion in mortgage bonds

Today, NextEra Energy Inc . (NYSE:NEE) and its subsidiary Florida Power & Light Company announced the sale of $2 billion in first mortgage bonds. The sale, completed on February 21, 2025, includes three series of bonds with varying maturities and interest rates.

The company sold $350 million of its 5.30% First Mortgage Bonds, Series due June 15, 2034, bringing the total outstanding amount for this series to $1.1 billion. Additionally, it issued $950 million in 5.70% First Mortgage Bonds, Series due March 15, 2055, and $700 million in 5.80% First Mortgage Bonds, Series due March 15, 2065. This adds to NextEra’s existing total debt of $83.6 billion, with InvestingPro data showing short-term obligations currently exceeding liquid assets.

These bonds, known as the Offered Bonds, were registered under the Securities Act of 1933. The registration was facilitated through Registration Statement Nos. 333-278184, 333-278184-01, and 333-278184-02. The 2034 Offered Bonds represent a further issuance and are consolidated to form a single series with the previously issued bonds of the same rate and maturity date.

The sale of these bonds is reported in a Current Report on Form 8-K filed by NextEra Energy, which includes the legal opinions and consents regarding the Offered Bonds as exhibits. These documents were provided by Squire Patton Boggs (US) LLP and Morgan, Lewis (JO:LEWJ) & Bockius LLP, serving as counsel to Florida Power & Light Company.

NextEra Energy, headquartered in Juno Beach, Florida, is a leading company in the electric services sector, operating under the standard industrial classification code 4911. The company, formerly known as FPL Group Inc., underwent a name change on July 3, 1992. With an impressive track record of raising dividends for 29 consecutive years and maintaining payments for 55 years, NextEra demonstrates strong shareholder commitment. Discover more insights about NEE’s financial health and growth potential through the comprehensive Pro Research Report available on InvestingPro.

This financial move by NextEra Energy is part of its broader efforts to manage its capital structure and continue its operations in the energy sector. The information provided in this article is based on a press release statement.

In other recent news, NextEra Energy has announced a 10% increase in its quarterly dividend, now set at $0.5665 per share. This decision is part of the company’s plan to achieve an annual growth rate of approximately 10% in dividends per share through at least 2026. Additionally, NextEra Energy Capital Holdings, a subsidiary, has issued $2.5 billion in junior subordinated debentures, as well as $5 billion in debentures with varying interest rates and maturities. These financial moves are aligned with the company’s strategic financial planning and capital allocation.

UBS recently maintained a Buy rating on NextEra Energy, keeping the price target at $94, citing the company’s growth prospects and its partnership with GE Vernova. The collaboration aims to explore opportunities in gas generation, renewable energy, and battery storage. Meanwhile, BofA Securities raised its price target for NextEra Energy to $74 from $71, maintaining a Neutral rating. This update follows NextEra Energy’s strategic shift to include gas development in partnership with GE Vernova, which is expected to enhance the company’s value proposition.

These developments underscore NextEra Energy’s ongoing efforts to strengthen its financial position and explore new growth avenues. The company’s recent actions and partnerships reflect its commitment to meeting the evolving demands of the energy sector.

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