NextEra retains financiers to advice on Oncor transaction

NextEra

NextEra Energy secured access to a contingent of financial institutions to act as advisors on its agreement to buy 100 percent of the equity of reorganized Energy Future Holdings Corp. and certain of its direct and indirect units, including EFH's about 80 percent indirect interest in Oncor Electric Delivery Co.

The contingent of financial institutions is led by Credit Suisse Securities and Bank of America Merrill Lynch and includes Deutsche Bank Securities Inc., Goldman, Sachs & Co., J.P. Morgan Securities, UBS Securities, Wells Fargo Securities, BNP Paribas Securities Corp., CIBC World Markets Corp., Credit Agricole Corporate and Investment Bank, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., Scotiabank Capital Inc., Sumitomo Mitsui Banking Corp., TD Securities, The Bank of Tokyo-Mitsubishi UFJ, and U.S. Bank National Association.

Under agreements entered into with these financial institutions, the entities have agreed to serve as financial advisors on the acquisition of Oncor. NextEra Energy's access to these institutions to support the Oncor transaction strengthens the ability of NextEra Energy to obtain financing for the proposed transaction.

"We are pleased to have reached agreements with this well-respected contingent of global banks, which provide further assurance of our ability to finance our proposed acquisition of Oncor," said Jim Robo, chairman and chief executive officer of NextEra Energy. "These agreements underscore NextEra Energy's financial strength and our longstanding relationships with a number of leading financial institutions. We appreciate the trust they have placed in our company and look forward to bringing this financial strength and additional financial resources to the combined company for the benefit of Oncor and its customers."

As part of the Oncor transaction, NextEra Energy intends to fund $9.5 billion, primarily for the repayment of about all of the Energy Future Intermediate Holding Co. debt. It is expected that certain creditors will be paid primarily in cash with the remainder in NextEra Energy common stock.

The number of shares issuable to creditors will be determined based on the estimated cash on hand at EFH at the closing of the transaction, the volume weighted average price of NextEra Energy common stock for a specified number of days leading up to the closing and other factors specified in the definitive agreement. NextEra Energy intends to use a combination of debt, convertible equity units and proceeds from asset sales to fund cash being provided to creditors.

The Oncor transaction is not subject to any financing contingencies. NextEra Energy intends to repay in full the EFIH first lien debtor-in-possession financing facility (currently about $5.4 billion principal amount) using cash financed by a non-EFH/Oncor NextEra Energy affiliate upon closing. As part of EFH's plan of reorganization, the transaction would extinguish all EFH and EFIH debt that currently exists above Oncor.

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