Davis Polk advised Citibank, N. A. as forward counterparty under a forward sale agreement with NextEra Energy, Inc. relating to 6,600,000 shares of its common stock in connection with an SEC-registered offering by NextEra Energy of a total of 11,100,000 shares of its common stock, in which NextEra Energy also issued and sold 4,500,000 shares of its common stock to the underwriters in the offering. In connection with the forward sale agreement, an affiliate of Citibank N. A. borrowed from third parties an aggregate of 6,600,000 shares of NextEra Energy’s common stock and sold these shares to the underwriters. The net proceeds to NextEra Energy of the offering (assuming physical settlement of the forward sale agreement at the initial forward sale price) are expected to be approximately $977 million, $581 million of which are expected to be received at settlement the forward sale agreement.
NextEra Energy, Inc. is a leading clean energy company with revenues of approximately $14.3 billion, more than 42,000 megawatts of generating capacity, and nearly 15,000 employees in 26 states and Canada as of year-end 2012. Headquartered in Juno Beach, Florida, NextEra Energy’s principal subsidiaries are Florida Power & Light Company, which serves approximately 4.6 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which together with affiliated entities is the largest generator in North America of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin.
The Davis Polk equity derivatives team included partner Mark M. Mendez, associate Barry J. Gewolb and law clerk Xing Yan. Partner Michael Farber and associate Juelle Gomes provided tax advice. All members of the Davis Polk team are based in the New York office.
