NextEra Energy to Raise $2 Billion in Equity Units to Fund Power Projects

NextEra Energy (NYSE: NEE) plans to raise $2 billion through a public equity offering, adding to a series of financings by U.S. power generators seeking to fund capacity expansion amid rising demands from data centers.

The Juno Beach, Florida-based company said it expects to grant underwriters an option to purchase up to an additional $300 million of equity units to cover overallotments, potentially bringing the total size of the offering to $2.3 billion.

Proceeds will be added to the general funds of NextEra Energy Capital Holdings, a wholly owned subsidiary, which plans to use the funds to invest in energy and power projects and for general corporate purposes, including repaying a portion of its outstanding commercial paper.

Each equity unit will have a stated amount of $50 and will consist of two components: a forward contract requiring the holder to purchase NextEra common stock at a future date, and undivided beneficial ownership interests in two series of debentures issued by NextEra Energy Capital Holdings.

The debentures include a Series P note due Feb. 15, 2031, and a Series Q note due Feb. 15, 2034, each with a principal amount of $1,000. Both series will be guaranteed by NextEra Energy.

Under the terms of the transaction, investors will be required to purchase NextEra common shares in approximately three years, with the settlement date no later than Feb. 15, 2029. The purchase price will be based on a range reflecting a 0% to 25% premium to the company’s closing stock price on the New York Stock Exchange on Feb. 26, 2026. The final price will be determined by the average closing price of the shares over a 20-trading-day period ending Feb. 12, 2029.

Investors may use proceeds from a remarketing of the debentures included in the equity units to meet their stock purchase obligations.

When the purchase contracts settle, NextEra will receive cash and issue the corresponding number of common shares. Until settlement, the purchase contracts will be reflected in diluted earnings per share calculations under the treasury stock method.

Equity units, which combine debt and a forward equity component, are often used by utilities and capital-intensive energy companies to raise funds while deferring share issuance and managing near-term dilution. The structure allows issuers to secure capital upfront while spacing out the impact on common equity.