JUNO BEACH, Fla. – FPL Group Capital Inc today announced the sale of $350 million principal amount of Series E Junior Subordinated Debentures bearing interest at 7.45 percent per year. The junior subordinated debentures will be fully and unconditionally guaranteed on a subordinated basis by FPL Group Capital’s parent company, FPL Group, Inc. (NYSE:FPL).
The junior subordinated debentures due September 1, 2067 will be offered to the public at a price of $25 per debenture.
Net proceeds from the sale will be added to FPL Group Capital’s general funds and FPL Group Capital expects to use its general funds to repay a portion of commercial paper issued to fund investments by FPL Group Capital in independent power projects.
The sale was underwritten by Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated, UBS Securities LLC, and Wachovia Capital Markets, LLC as joint bookâ€‘running managers. The junior coâ€‘managers were A.G. Edwards & Sons, Inc., Banc of America Securities LLC, Lehman Brothers Inc., Raymond James & Associates, Inc. and RBC Dain Rauscher Inc. Wachovia Capital Markets, LLC acted as structuring advisor for this transaction.
FPL Group, with annual revenues in 2006 of $15.7 billion, is nationally known as a highâ€‘quality, efficient, and customerâ€‘driven organization focused on energyâ€‘related products and services. With a growing presence in 27 states, it is widely recognized as one of the country’s premier power companies. Its principal subsidiary, Florida Power & Light Company, serves approximately 4.5 million customer accounts in Florida. FPL Energy, LLC, an FPL Group competitive energy subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet atwww.FPLGroup.com, www.FPL.com and www.FPLEnergy.com.