JUNO BEACH, Fla. – NextEra Energy Capital Holdings, Inc. (Capital Holdings) today announced it has entered into a 34 billion Japanese yen three-year term loan agreement, which may be increased up to a maximum aggregate principal amount of 40 billion Japanese yen, subject to certain terms and conditions. The term loan will be guaranteed by Capital Holdings' parent company, NextEra Energy, Inc. (NYSE: NEE)
Upon funding of the loan, Capital Holdings exchanged the Japanese yen borrowed for U.S. dollars in the amount of approximately $424 million and entered into two cross currency basis swaps to hedge against currency movements with respect to both interest and principal payments on the loan. The proceeds from the loan are being used for general corporate purposes. Prior to entering into the term loan agreement, Capital Holdings prepaid existing Japanese yen term loans totaling approximately $287 million that were scheduled to mature in December 2011.
“This transaction demonstrates NextEra Energy’s ability and commitment to maintain a diversified capital structure. Increasing our sources of capital is prudent in today's financial environment,” said Armando Pimentel, executive vice president of finance and chief financial officer of NextEra Energy, Inc. “We’re very pleased with the success of this yen-denominated transaction.”
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with 2010 revenues of more than $15 billion, nearly 43,000 megawatts of generating capacity, and approximately 15,000 employees in 28 states and Canada. Headquartered in Juno Beach, Fla., NextEra Energy’s principal subsidiaries are NextEra Energy Resources, LLC, which together with its affiliated entities is the largest generator in North America of renewable energy from the wind and sun, and Florida Power & Light Company, which serves approximately 4.5 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the country. Through its subsidiaries, NextEra Energy collectively operates the third largest U.S. nuclear power generation fleet. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com,www.NextEraEnergyResources.com, www.FPL.com