NextEra Energy Plans $1.5 Billion Equity Unit Offering

NextEra Energy (NYSE: NEE) announced plans on Monday to raise $1.5 billion through an equity unit offering to support new projects.

The company’s shares fell more than 3.5% in premarket trading Tuesday.

As U.S. utility firms ramp up investments in power infrastructure to meet surging demand from AI-driven data centers, this marks NextEra's second capital-raising initiative of the year, aimed primarily at funding energy and power developments.

The company, which operates the world’s largest renewables business and one of the largest regulated electric utilities in the U.S., reported a renewable energy project backlog of 24 gigawatts in the third quarter.

Each equity unit will be issued at $50, comprising a contract to purchase NextEra's common stock in three years, with terms allowing for cash purchase within a premium range of 0% to 25% above the October 28 closing price.

>The holders of the equity units must complete the stock purchase by no later than Nov. 1, 2027, with the required purchase price of stock being determined over the 20 consecutive trading days ending on Oct. 27, 2027.

The units will include a 5% beneficial interest in a NextEra Energy Capital Holdings debt issuance, set at $1,000 principal and due on November 1, 2029.

NextEra earlier this month reported third-quarter 2024 adjusted earnings that exceeded analyst expectations, though revenue missed forecasts, and the company's outlook left investors disappointed.

The clean energy firm delivered adjusted earnings per share (EPS) of $1.03, beating the consensus estimate of $0.98. However, revenue totaled $7.57 billion, falling short of the projected $8.08 billion.