NextEra Energy Inc. (NYSE: NEE) secured access to a broad contingent of leading financial institutions to act as financial advisors related to its planned $18.4 billion acquisition of Oncor Electric Delivery Co. LLC.
The group of financial institutions is led by Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch and includes Deutsche Bank Securities Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC, and several others. The 17 total financial institutions will serve as financial advisors on the transaction.
As part of the Oncor deal, NextEra Energy intends to fund $9.5 billion, primarily to repay all of Energy Future Intermediate Holding Co. LLC’s (EFIH) debt. The Oncor deal is not subject to any financing contingencies. NextEra Energy intends to repay in full the EFIH first liens debtor-in-possession financing facility, currently $5.4 billion in principal.
The deal is subject to bankruptcy court approval of the merger approval and EFH’s plan of reorganization, approval by the Public Utility Commission of Texas, the expiration or termination of the waiting period under the Hart-Scott-Rodino Act, approval by the Federal Energy Regulatory Commission and other customary conditions and approvals.
NextEra expects to close the acquisition by first quarter of 2017.