NextEra Energy Partners (NEP) Issues Notes To Repay Debt
Zacks Investment Research | Sep 18, 2017 09:34PM ET
NextEra Energy Partners, LP (NYSE:NEP) announced that it has made an offering of $1.1 billion in aggregate principal amount of senior unsecured notes in a series of tranches through its direct subsidiary, NextEra Energy Operating Partners, LP, (NEP OpCo) in a private placement. These notes are expected to be issued in a series of tranches with maturities up to 10 years.
NEP OpCo intends to use a portion of the net proceeds from this offering to pay off the outstanding balance under its revolving credit facility, other outstanding debts and related fees, expenses and costs. It intends to make use of the remaining amount toward general partnership purposes.
NextEra Energy Partners was formed as limited partnership by NextEra Energy, Inc. (NYSE:NEE) to acquire, manage and own contracted clean energy projects with stable, long-term cash flows.
The above private placement will aid the company to provide the financing flexibility needed to pay off its outstanding debts and create substantial balance sheet capacity moving forward. As such the issuance of senior unsecured notes in a private placement will aid it to save up on additional expenses and costs.
Other Steps toward Capital Strengthening
Additionally, the partnership has also been taking steps to strengthen balance sheet while using proceeds to fund growth projects and utilize the excess toward debt lowering purposes. Most recently it announced the completion of sale of $300-million convertible senior notes due 2020. The partnership aims to use a part of the proceeds for general partnership purposes. (Readmore: Zacks Investment Research
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