Debt

3 Months Ended

Mar. 31, 2024

Significant long-term debt issuances and borrowings during the three months ended March 31, 2024 were as follows:


	Principal Amount		Interest Rate						Maturity Date
	(millions)




NEECH:
Debentures – fixed	$	3,800	4.90	%	–	5.55	%		2026	–	2054
Debentures – variable	$	600	Variable					(a)	2026
Junior subordinated debentures	$	1,000	6.70				%	(b)	2054
Exchangeable senior notes(c)	$	1,000	3.00				%		2027
Canadian dollar denominated debentures(d)	$	744	4.85				%		2031
Revolving credit facilities	$	700	Variable					(a)	2025

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(a)Variable rate is based on an underlying index plus a specified margin.

(b)Debentures will bear interest at a rate of 6.70% to September 1, 2029 and thereafter will bear interest at a rate equal to the Five-Year Treasury Rate (as specified in the junior subordinated debentures) plus 2.364%, reset every five years.

(c)See additional discussion of the exchangeable senior notes below.

(d)A foreign currency swap has been entered into with respect to this debt issuance. See Note 2.

In March 2024, NEECH issued $1.0 billion principal amount of its exchangeable senior notes due 2027 (the notes). A holder may exchange all or a portion of its notes at any time prior to the maturity date in accordance with the related indenture. Upon exchange, NEECH will pay cash up to the aggregate principal amount of the notes being exchanged and has the right, at its sole discretion, to pay or deliver cash, shares of NEE common stock or a combination of both, in respect of the remainder, if any, of NEECH's exchange obligation in excess of the aggregate principal amount of the notes being exchanged. At March 31, 2024, the initial exchange rate, which is subject to certain adjustments as set forth in the indenture, is 14.6927 shares of NEE common stock per $1,000 in principal amount of notes, which is equivalent to an initial exchange price of approximately $68.06 per share of NEE common stock.

NEECH used $52 million of the net proceeds from the sale of the notes to enter into capped call transactions. Under the capped call transactions, NEECH purchased capped call options with an initial strike price of $68.06 and an initial cap price of $83.34 in each case per share of NEE common stock and subject to adjustment in certain circumstances. The capped call transactions may be settled with cash or, at NEE's election, with shares of NEE common stock. Any capped call settlement value is expected to offset the value to be delivered upon exchange of the notes as a result of share price improvement up to the cap price.