NextEra’s Florida Power & Light Raises $400 Million in Bond Sale

NextEra Energy Inc., the wind and solar energy producer, issued $400 million of 30-year first-mortgage bonds.

The company, through its Florida Power & Light Co. unit, sold the 3.8 percent securities to yield 92 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. Proceeds will be used to pay existing debt and for general corporate purposes, according to a person familiar with the transaction.

The Florida subsidiary previously sold debt in May, issuing $600 million of 4.05 percent, 30-year debentures at a relative yield of 100 basis points, Bloomberg data show. The bonds traded at 106.6 cents on the dollar to yield 3.68 percent, a spread of 88.7 basis points, on Nov. 29, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The new bonds may be rated Aa3 by Moody’s Investors Service, according to the person, who asked not to be identified citing lack of authorization to speak publicly.

Long maturity debt from Public Service Enterprise Group Inc., the Newark, New Jersey-based utility that had 1.7 million customers without power during Hurricane Sandy, had an average spread of 147 basis points on Dec. 14, according to the Bank of America Merrill Lynch 15+ Year US Utility index. The company has a BBB+ senior unsecured debt rating from Fitch Ratings, Bloomberg data show.

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