Terms

Series

Series N Junior Subordinated Debentures due March 1, 2079

Liquidation Preference

$25.00

Coupon Rate

5.65%

Rate Type

Fixed

Annual Dividend

$1.41

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

June 15, 2024

First Call Price

$25.00

Mandatory Redemption Date

March 1, 2079

Capital Stack Ranking

Junior To: Nee Capital Senior Indebtedness (~$16.7 Billion As Of March 5, 2019), All Liabilities Of Nee Capital Operating Subsidiaries (Structurally Senior), Nee Senior Indebtedness; Pari Passu With: Pari Passu Securities As Defined In The Indenture; Senior To: Nee Capital Common Stock, Nee Capital Preferred Stock, Equal Or Junior Debt Securities

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

24,000,000

Prospectus Summary

NextEra Energy Capital Holdings, Inc. (NEE Capital), a wholly owned subsidiary of NextEra Energy, Inc. (NEE), is offering $600 million of its Series N Junior Subordinated Debentures due March 1, 2079, at $25.00 par value bearing a fixed interest rate of 5.65% per annum, guaranteed unconditionally by NEE. Interest is paid quarterly on March 1, June 1, September 1, and December 1, beginning June 1, 2019. These debentures are not preferred equity but debt instruments; interest is cumulative in the sense that deferred payments accrue additional interest at 5.65% and must be repaid in full — however, NEE Capital may defer interest for up to 10 consecutive years per deferral period, creating meaningful payment-timing risk. The Junior Subordinated Debentures rank junior and are subordinated to all of NEE Capital's Senior Indebtedness (approximately $16.7 billion as of March 5, 2019) and pari passu with other Pari Passu Securities. Because NEE Capital is a holding company whose operating subsidiaries (primarily NEER) are separate legal entities with no obligation to service these debentures, the debentures are also effectively subordinated to all debt and liabilities of those subsidiaries — creating a dual layer of subordination. The NEE parent guarantee is similarly junior to all of NEE's Senior Indebtedness. There is no regulatory capital call provision, as this is a utility holding company, not a bank. NEE Capital may optionally redeem these debentures at par on or after June 15, 2024; before that date, redemption is permitted only in whole upon a tax event (at par) or a rating agency equity credit methodology change (at 102%). At the $25.00 offering price, the effective yield is 5.65% annually ($1.4125 per debenture per year, or approximately $0.3531 per quarter). These are debt instruments classified as indebtedness for U.S. federal income tax purposes, so payments are treated as ordinary interest income — not qualifying dividend income (QDI) and not eligible for the corporate dividends-received deduction (DRD). During a deferral period, holders will still owe U.S. federal income tax on accrued interest even if no cash is received. The record date is the business day immediately preceding each payment date (book-entry) or the 15th calendar day preceding (certificated form). Interest stopper mechanics apply: during any deferral period, NEE and NEE Capital are prohibited from paying dividends on their stock or servicing equal or junior ranking obligations until all deferred interest is paid.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If NEE Capital defers interest payments, NEE and NEE Capital are prohibited from paying dividends on their common or preferred stock and from making payments on equal or junior ranking securities until all deferred interest is paid in full.

Other Preferreds from Nextera Energy Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 60 (Average)