Simpson Thacher, acting as product counsel, recently represented Barclays Capital Inc., as initial purchaser, in connection with NextEra Energy Partners, LP’s (NYSE: NEP) offering of $300 million aggregate principal amount of 1.5% Convertible Senior Notes due 2020. The notes were offered to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933.
NextEra Energy Partners intends to use a portion of the net proceeds from the offering of the notes to fund the potential future acquisition of renewable energy assets either from NextEra Energy Resources, LLC or from third parties, as well as to pay the approximately $12.3 million initial cost of the capped call transaction. Any remaining proceeds are expected to be used for general partnership purposes.
In addition, the Firm represented the dealer in connection with a capped call transaction relating to common units of NextEra Energy Partners, entered into concurrently with the notes offering.
NextEra Energy Partners is a growth-oriented limited partnership formed by NextEra Energy, Inc. to acquire, manage and own contracted clean energy projects with stable long-term cash flows. NextEra Energy Partners owns interests in wind and solar projects in North America, as well as natural gas infrastructure assets in Texas. The renewable energy projects are fully contracted, use industry-leading technology and are located in regions that are favorable for generating energy from the wind and sun.
The Simpson Thacher team included Bill Brentani, Dan Webb, Ryan Coombs and Sherry Shen (Capital Markets); Joyce Xu, Lihua Chen, Shimeng Cheng and Chajin Wu (Derivatives); Marcy Geller, Jonathan Cantor and Michael Badain (Tax); and Andrew Pagliughi (Blue Sky).