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NextEra Energy Stock Sliding After Power Company Announces Sale of $2 Billion of Equity Units

The shares of power company NextEra Energy have been sliding this week after the company announced plans to sell $2 billion of equity units. Its stock is more than 3% down from Monday’s opening price of $72.72 per share.

As part of its plan, NextEra Energy will issue equity units worth $50 a piece. Each equity unit will serve as a contract for buyers, who will be required to purchase the company’s common stock in “a per-share price range of $72.31 to $90.38” by June 1, 2027. The buyers are already lined up, with Wells Fargo Securities and BofA Securities set to acquire $2.0 billion of equity units.

According to NextEra Energy’s press release, the company intends to use funds it raises with the sale to finance future projects.

“NextEra Energy Capital Holdings expects to use its general funds to fund investments in energy and power projects and for other general corporate purposes, including the repayment of a portion of its outstanding commercial paper obligations,” NextEra Energy shared in a press release.  

NextEra Energy’s stock closed at $70.44 per share on Tuesday, with the stock market being closed on Wednesday due to Juneteenth. The company’s shares are 14.41% up year to date.

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