- NextEra Energy Partners (NYSE:NEP) entered into an amended agreement to upsize by $150M its existing convertible equity portfolio financing with KKR, through its core infrastructure strategy.
- The company originally entered into the 10-year convertible equity portfolio financing in November 2020.
- The additional draw is expected to occur by the end of Q2 which is now expected to total ~$500M taking the total expected proceeds from the 10-year convertible equity portfolio financing agreement to ~$1.25B.
- Proceeds from the second draw are expected to be used to partially fund NextEra Energy Partners' earlier announced planned acquisition of ~400 MW of operating wind assets.
- Led by the upsize, investor's effective annual coupon over the initial 10-year period is reduced to ~3.9%, below the originally expected 4.4% effective annual coupon at the time of the transaction agreement.
- Outlook as of Dec.31 2021: Expects run rate for adj. EBITDA in the upper end of its earlier announced range of $1.44B to $1.62B and cash available for distribution in the upper end of its earlier announced range of $600 to $680M, indicating CY22 expectations for the portfolio at year-end 2021.
- NextEra Energy Partners continues to expect 12% to 15% annual growth in limited partner distributions as being a reasonable range of expectations through at least 2024.
- It expects the annualized rate of Q4 distribution, payable in February 2022, to be in a range of $2.76 to $2.83 per common unit.