Juno Beach, Fla. — FPL Group, Inc. (NYSE: FPL) announced today that it has agreed to sell $350 million of equity units to Credit Suisse Securities (USA) LLC. FPL Group has granted Credit Suisse Securities (USA) LLC an option to purchase an additional $52.5 million of equity units to cover over-allotments. FPL Group intends to apply for listing of the equity units on the New York Stock Exchange under the symbol “FPL PrD.” The transaction is expected to close on May 26, 2009.
Each equity unit will have a stated value of $50. The equity units will consist of 1) a contract to purchase FPL Group common stock in the future and 2) a 1/20, or 5 percent, undivided beneficial ownership interest in $1,000 principal amount of a FPL Group Capital Inc debenture due June 1, 2014. The debenture will be guaranteed by FPL Group Capital’s parent company, FPL Group.
Total annual distributions on the equity units will be at the rate of 8.375 percent, consisting of interest on the debenture and payments under the stock purchase contract. The stock purchase contract will require the holder to purchase FPL Group common stock for cash, which can be satisfied from proceeds raised from remarketing the FPL Group Capital debentures, based on a price per share range of $55.67 to $66.80 no later than the settlement date of June 1, 2012. The higher end of this price range reflects a premium of 20 percent over the NYSE closing price of FPL Group common stock on May 19, 2009, which was $55.67.
Net proceeds from the sale will be added to FPL Group Capital’s general funds. FPL Group Capital expects to use its general funds to fund investments in independent power projects, including renewable power projects, and for other general corporate purposes including the repayment of commercial paper.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. Each offering may be made only by means of a prospectus and the related prospectus supplement, copies of which may be obtained from Credit Suisse Securities (USA) LLC, One Madison Avenue, New York City, 10010; telephone 1-800-221-1037.
FPL Group: Energy Solutions for the Next Era
FPL Group (NYSE: FPL) is a leading clean energy company with 2008 revenues of more than $16 billion, approximately 39,000 megawatts of generating capacity, and more than 15,000 employees in 27 states and Canada. Headquartered in Juno Beach, Fla., FPL Group’s principal subsidiaries are NextEra Energy Resources, LLC, the largest generator in North America of renewable energy from the wind and sun, and Florida Power & Light Company, which serves 4.5 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the country. Through its subsidiaries, FPL Group collectively operates the third largest U.S. nuclear power generation fleet. For more information about FPL Group companies, visit these Web sites:www.FPLGroup.com, www.NextEraEnergyResources.com, www.FPL.com.