Terms

Series

Equity Units (Corporate Units) - Series O Debenture due November 1, 2029

Liquidation Preference

$50.00

Coupon Rate

4.635%

Rate Type

Fixed To Floating

Payment Frequency

Quarterly

Cumulative

No

Perpetual

No

Convertible

Yes

Callable

No

Mandatory Redemption Date

November 1, 2027

Capital Stack Ranking

Junior To: Secured Creditors, Any Senior Obligations Of Nee Capital And Nee; Pari Passu With: Nee Capital'S Other Unsecured And Unsubordinated Obligations, All Other Unsecured And Unsubordinated Obligations Of Nee (Guarantee)

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Depositary Share Fraction

0.05

Shares Offered

30,000,000

Prospectus Summary

NextEra Energy, Inc. is offering 30,000,000 Equity Units (initially Corporate Units) at $50 stated amount each, consisting of a purchase contract plus a 5% undivided interest in a $1,000 Series O Debenture due November 1, 2029, issued by subsidiary NEE Capital at 4.635% per year (quarterly). The purchase contract mandatorily settles on November 1, 2027, requiring holders to buy NEE common stock for $50, with share count varying from 0.4827 to 0.6034 shares depending on market price. Additionally, NEE pays quarterly contract adjustment payments at 2.599% per year ($1.2995/year). This is not a traditional cumulative preferred; there are no cumulative accruals on missed contract adjustment payments, though NEE may defer such payments. The NEE Capital debentures underlying the Corporate Units rank pari passu with all other unsecured and unsubordinated obligations of NEE Capital, and NEE's guarantee of those debentures ranks pari passu with all unsecured and unsubordinated obligations of NEE. This is structurally subordinated to all secured debt and any senior obligations of either entity. Holders bear the credit risk of NEE Capital (a holding company subsidiary) with a parent-level guarantee, meaning repayment depends on cash being upstreamed from operating subsidiaries. There is no regulatory capital call provision, as this is a utility/energy company, not a bank. The all-in yield at $50 comprises 4.635% on the debenture component plus 2.599% in contract adjustment payments, totaling approximately 7.234% annually before any remarketing reset. After a successful remarketing (expected around November 2027), the debenture rate resets and payments switch to semi-annual. Interest on the debentures and contract adjustment payments are treated as ordinary income, not qualified dividends, so investors do not benefit from the 15%/20% QDI rate or the corporate dividends-received deduction. NEE retains the right to defer contract adjustment payments, which could interrupt that portion of cash flows without constituting a default.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

NEE has the right to defer contract adjustment payments on the purchase contracts; no traditional preferred stock dividend stopper provisions apply as these are equity units, not preferred shares.

Other Preferreds from Nextera Energy Inc

Div Score Breakdown

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