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FPL Energy Announces Completion of Subsidiary Financing

^{Published on 2008-12-22 13:42:33, Last Modified on 2008-12-22 13:43:15 - Market Wire}
 

JUNO BEACH, Fla.--([ BUSINESS WIRE ])--FPL Energy, LLC, a subsidiary of FPL Group, Inc. (NYSE:FPL), announced today that its indirect wholly owned subsidiary, Heartland Wind, LLC, entered into a $322.5 million limited-recourse senior secured variable rate term loan maturing in December 2016.

FPL Energy intends to use the proceeds of the loan to reimburse, in part, capital contributions made by FPL Energy to develop and construct facilities totaling 309 megawatts of wind generation and associated transmission facilities in North Dakota and Iowa.

"This financing is a testament to both the quality of FPL Energy as a sponsor and the strong economics of the projects themselves," said Armando Pimentel, chief financial officer of FPL Group. "In one of the most challenging credit markets in recent times, we were able to secure financing on attractive terms, further validating our successful model of developing high-quality, economically attractive projects that can be financed on a limited recourse basis in the project debt markets."

Under the terms of the loan agreement, the amount of the loan may be increased up to a maximum aggregate principal amount of $400 million on or before March 31, 2009. Interest on the loan is payable quarterly and principal is partially amortizing with a balloon payment at maturity. The loan is secured by liens on these wind generation assets and associated transmission facilities and the ownership interest in Heartland Wind.

FPL Energy has a track record of leadership in the generation of electricity from clean, renewable sources. It began investing in renewable projects in the late 1980s. The largest owner and operator of wind generating facilities in North America, FPL Energy currently has more than 6,100 megawatts of wind generation at 64 facilities in 16 states and Canada. FPL Energy also is the largest generator of solar thermal power in the world. The company co-owns and operates seven solar plants in California's Mojave Desert, which are collectively the world's largest solar site. In all, FPL Energy operates 310 megawatts of solar power.

About FPL Energy:

FPL Energy is a leading competitive energy supplier utilizing clean fuels such as natural gas, wind, solar, hydroelectric and nuclear to generate electricity. It is the nation's leader in wind and solar energy. It is a subsidiary of FPL Group (NYSE: FPL), one of the nation's largest providers of electricity-related services with annual revenues of more than $15 billion. Additional information is available at [ www.FPLEnergy.com ], [ www.FPLGroup.com ] and [ www.FPL.com ].

Note to Editors: High-resolution logos and executive head shots are available for download at [ http://www.fpl.com/news/contents/logos.shtml ].