Narrative
Full Description
Project narrative
On February 9, 2012, financial close was reached on a deal in which a syndicate of 11 banks — including the Bank of China (BOC) — entered into a $5.000 billion USD syndicated revolving credit facility (RCF) agreement with NextEra Capital Holdings, Inc. (NEECH) — a Florida-incorporated holding wholly-owned company subsidiary of NextEra Energy, Inc. — and Florida Power & Light Company (FPL) — a Florida-incorporated power utility company and wholly-owned subsidiary of NextEra Energy, Inc. based in Juno Beach, Florida — for refinancing and general corporate purposes. This RCF carried a maturity period of five years and a final maturity date of February 9, 2017 and was divided into two tranches: a $3.1 billion USD senior unsecured RCF tranche for NEECH; and $1.9 billion USD senior unsecured RCF for FPL. NextEra Energy issued a guarantee for the Capital Holdings' tranche. Additionally, there were revolving letter of credit facilities worth up to 50% of such amounts. The borrowers were required to maintain a ratio of funded debt to total capitalization not to exceed a stated ratio. The proceeds were to be used by the borrowers for refinancing purposes, replacing 75% of the credit made under two existing RCF and letter of credit agreements, for their general corporate purposes and to provide back-up liquidity for the borrower's commercial paper programs and other short-term borrowings and to provide additional liquidity in the event of a loss to the borrowers or their subsidiaries' operating facilities. Each of the 11 lenders, including BOC, contributed $454.54 million USD to the RCF. In addition to BOC, the following lenders contributed to the loan syndicate: Bank of America Corporation, Citigroup, Credit Suisse AG, JPMorgan Chase Bank, N.A., Mizuho Financial Group, the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Royal Bank of Canada (RBC), Royal Bank of Scotland (RBS), the Bank of Nova Scotia (Scotiabank), and Wells Fargo Company N.A..
Staff comments
1. It is unclear what the breakdown of BOC's contribution was to the two tranches; for the time being, AidData has assumed it contributed to both. 2. Florida Power & Light Company, the principal wholly-owned subsidiary of NextEra Energy, Inc., is the largest power utility in Florida and has the third-largest number of customers of any electric utility in the United States. It is a Juno Beach, Florida-based power utility company serving roughly 5 million customers and 11 million people in Florida and had about 10,000 employees as of the end of 2012. 3. NextEra Capital Holdings, Inc. (NEECH) is a holding company and wholly-owned subsidiary of NextEra Energy, Inc.