NextEra Energy Inc (NYSE:NEE). and its subsidiary, Florida Power & Light Company, announced the sale of $167,105,000 in floating rate notes due in 2074. The sale, which took place today, features a novel interest rate structure pegged to the Compounded Secured Overnight Financing Rate (SOFR) minus 0.35%, with the rate being recalculated quarterly.
The newly issued securities are set to mature on July 2, 2074, extending the company's debt profile with long-term financing. The notes were offered under a previously filed registration statement with the Securities and Exchange Commission (SEC), which became effective upon the sale.
Legal opinions and consents regarding the notes were provided by Squire Patton Boggs (US) LLP and Morgan, Lewis & Bockius LLP, as detailed in the accompanying exhibits to the 8-K filing. These documents are standard procedural elements for the issuance of such financial instruments.
NextEra Energy Inc., listed on the New York Stock Exchange under the ticker NEE, is a leading company in the electric services sector, with Florida Power & Light Company as its primary subsidiary. The company's business address is located at 700 Universe Boulevard, Juno Beach, Florida.
In other recent news, NextEra Energy Partners has announced a series of investor meetings scheduled for June. The discussions will focus on the company's long-term growth expectations, echoing projections shared in the April 23, 2024, earnings call.
Major financial institutions have adjusted their price targets for NextEra Energy, with BofA Securities raising its target to $74.00, BMO Capital Markets to $79.00, Evercore ISI to $75.00, RBC Capital to $84.00, and Goldman Sachs (NYSE:GS) to $81.00. These adjustments follow NextEra Energy's extension of its earnings per share (EPS) growth guidance through 2027, targeting a 6-8% increase based on a 2024 base year.
InvestingPro Insights
In light of NextEra Energy Inc.'s recent financial activities, including the sale of floating rate notes, a closer look at the company's financial metrics and analyst insights from InvestingPro could be valuable to investors. According to InvestingPro data, NextEra Energy has a market capitalization of $143.94 billion and a P/E ratio of 19.21, indicating a robust valuation in the market. Further scrutiny reveals a P/E ratio adjusted for the last twelve months as of Q1 2024 at 21.61, with a PEG ratio for the same period at 2.23, suggesting expectations of future earnings growth relative to the company's earnings multiple.
A notable InvestingPro Tip for NextEra Energy is its consistent history of dividend payments, having maintained them for 54 consecutive years. Additionally, the company has managed to raise its dividend for 28 consecutive years, a testament to its financial stability and commitment to shareholder returns. However, it's important for investors to consider that some analysts have revised their earnings estimates downwards for the upcoming period, which could impact future dividend growth and overall financial performance.
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