NextEra Energy has taken public a renewable infrastructure fund, with shares in the fund soaring on its trading debut, highlighting investors’ growing interest in listed energy-related limited partnerships.
NextEra Energy Partners LP (NEP) priced its initial public offering (IPO) on the New York Stock Exchange of 16.25 million common units at $25 per unit, exceeding the projected price range of $19 to $21 per unit, according to statements from NextEra Energy.
The underwriters exercised in full their option to purchase an additional 2.44 million common units from NextEra Energy Partners at the IPO offering price, the statements said.
Juno Beach, Florida-based NEP is a limited partnership formed by NextEra Energy to own, operate and acquire contracted clean energy projects. It has interests in wind and solar projects in North America, according to the company.
NEP received net proceeds of about $442.7 million from the IPO, and intends to use a portion of the proceeds to purchase common units of NextEra Energy Operating Partners LP, which is the entity that holds NextEra Energy Partners’ project assets. From that purchase, NextEra Operating Partners plans to use the proceeds for general corporate purposes, including funding future acquisition opportunities.
NEP will use the remainder of the proceeds from the IPO to purchase common units of NextEra Energy Operating Partners from an affiliate of NextEra Energy.
BofA Merrill Lynch and Goldman, Sachs & Co. acted as joint book-running managers and structuring agents for the offering, and Morgan Stanley acted as a joint book-running manager.