6/11/2025
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NextEra Energy has priced their previously announced Jr. subordinated note offering.
The issue prices at 6.50% and is rated Baa2, BBB and BBB by Moodys, S&P and Fitch respectively.
There is no OTC trading on a baby bond.
Giant utility NextEra Energy (NEE) has announced they will be selling a new issue of $25 Junior Subordinated Notes. These notes will have a maturity way out in 2085.
As is pretty typical of theses types of notes the company will have the option to defer interest payments on one or more occasions for up to 10 consecutive years.
NEE has one other outstanding baby bond–although over the years they have had many, but most of them have been redeemed.
The preliminary prospectus can be read here.
Thanks to J for being on this one and for Jerrymac for chiming in with yield talk of 6.625% and If you prefer for jumping in with the announcement.
mREIT Two Harbors Investment (TWO) priced their previously announced senior notes with a coupon of 9.375%.
They are issuing 4 million shares (bonds) with another 600,000 shares available for overallotment.
There will not be OTC early trading in this issue and it will be a week or so before trading begins.
Finally we have a new issue being sold today with mortgage REIT Two Harbors Investment announcing they will be selling a new $25 note issue.
This issue which is likely to be high yield has a shorter optional redemption date of 5/15/2027 with a final maturity in 2030.
The use of proceeds mentions that they company may use the proceeds to redeem their 6.25% senior notes due 2026. The company has 3 fixed to floating preferreds outstanding.
The preliminary prospectus can be read here.
Thanks to J for catching this one and for Jerrymac chiming in with yield talk in the 9.50% area.
CLO CEF Oxford Lane Capital has priced a relatively large issue of baby bonds with 6.6 million shares (bonds) being sold. Additionally there are 990,000 shares available for over allotment.
The shares price at 7.95% and have a maturity date of 2/29/2032.
The company has numerous other term preferreds and baby bonds outstanding that should be reviewed and compared to this new issue before buying decisions are made.
The pricing term sheet can be seen here.