NextEra Energy subsidiary issues $5 billion in debentures

NextEra Energy, Inc. (NYSE:NEE), a leader in electric services with a market capitalization of $144 billion, has announced through a subsidiary the sale of $5 billion in debentures, according to a recent SEC filing. This move comes as InvestingPro data shows the company’s total debt stands at $82.3 billion, with short-term obligations exceeding liquid assets. On Monday, NextEra Energy Capital Holdings, Inc., fully owned by NextEra Energy, sold a series of debentures with varying interest rates and maturities.

The offering includes $1 billion of 4.85% debentures due in 2028, $1 billion of 5.05% debentures due in 2030, $750 million of 5.30% debentures due in 2032, $1 billion of 5.45% debentures due in 2035, and $750 million of 5.90% debentures due in 2055. Additionally, $500 million of floating rate debentures due in 2028 were sold. The floating rate debentures will have an interest rate tied to the Compounded Secured Overnight Financing Rate (SOFR) plus 0.80%. According to InvestingPro analysis, the company maintains a current ratio of 0.47, indicating tight liquidity management.

These financial instruments are guaranteed by NextEra Energy and were registered under the Securities Act of 1933. The legal opinions and consents concerning the debentures from Squire Patton Boggs (US) LLP and Morgan, Lewis (JO:LEWJ) & Bockius LLP were also filed as exhibits in the 8-K report.

The sale of these debentures is a significant financial move for NextEra Energy Capital Holdings, Inc., and by extension, for its parent company, NextEra Energy, Inc. The company’s business address is located at 700 Universe Blvd, Juno Beach, Florida, and it operates under the organization name 01 Energy & Transportation.

This transaction is detailed in the SEC Form 8-K filed on February 4, 2025, which serves as the source of this information. The form is a standard requirement for reporting significant events that shareholders should know about. The filing provides transparency into the company’s financial activities and offers investors the latest data regarding NextEra Energy’s financial maneuvers. Notably, InvestingPro reports that NextEra Energy has maintained dividend payments for 54 consecutive years, with a current dividend yield of 2.9%. For deeper insights into NEE’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, NextEra Energy has been the subject of several analyst reports, all of which highlight the company’s recent developments. UBS has maintained a Buy rating on NextEra Energy, emphasizing the company’s growth prospects, including an agreement with GE Vernova to explore opportunities for serving large loads with a combination of gas generation, renewable energy, and battery storage. Similarly, BofA Securities has raised its price target for NextEra Energy, following the company’s strategic shift to include gas development as a growth avenue.

Guggenheim reiterated a Buy rating on NextEra Energy, following the company’s fourth-quarter earnings report for 2024. The earnings, which matched consensus expectations, were supported by a robust performance from its regulated utility segment and its subsidiary, NextEra Energy Resources. The management at NextEra Energy is adjusting its strategy to meet the growing demand for renewable energy sources and has filed for a license renewal for the Duane Arnold Energy Center.

BofA Securities maintained its Neutral rating on NextEra Energy, with the company’s fourth-quarter adjusted earnings per share (EPS) slightly surpassing BofA’s projection. The earnings showed a slight increase from the same quarter of the previous year. Lastly, Goldman Sachs reiterated its Buy rating on NextEra Energy. The firm highlighted that NextEra Energy’s strong fundamentals and continued demand for renewable power are evident, despite potential policy risks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.