Energy company

FPL Group Capital

(FPL) - Get Report

said Wednesday that it would sell $350 million of junior subordinated debt.

The Series B enhanced junior subordinated debentures due Oct. 1, 2066, will bear an initial annual interest rate of 6.35%. Beginning Oct. 1, 2016, the junior subordinated debt will bear interest at the three-month LIBOR rate plus 206.75 basis points, reset quarterly.

The debt will be offered to the public at 99.872% of par to yield 6.367% when held to maturity.

The Juno Beach, Fla.-based company expects to use the proceeds to repay a portion of commercial paper issued to fund investments by FPL Group Capital in independent power projects and to repay outstanding long-term debt obligations.

FPL shares closed down a penny Wednesday at $44.39.

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