CenterPoint Energy Raises USD500 Million in Public Offering of 2.5% Notes Due 2022

Published: Aug 07 2017
Deal Summary

CenterPoint Energy, Inc, a power transmission and distribution company, has completed the public offering of 2.5% senior notes due September 1, 2022, for gross proceeds of USD500 million. The notes were issued at 99.971% of the principal amount and will yield 2.506% upon maturity. The company received net proceeds of approximately USD495.7 million.

Interest on notes will be paid semi annually on March 1 and September 1 of each year, commencing from March 1, 2018. Prior to August 1, 2022, the notes may be redeemed at greater of 100% or make-whole at a discount rate of Treasury plus 12.5 basis points (calculated to August 1, 2022); and on or after August 1, 2022, at 100% plus, in either case, accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

Barclays Capital Inc., Goldman Sachs & Co LLC, Morgan Stanley & Co. LLC and MUFG Securities Americas Inc. acted as joint book-running managers, TD Securities (USA) LLC acted as senior co-manager, Evercore Group LLC and Samuel A. Ramirez & Company, Inc acted as co-managers, while Baker Botts LLP is acting as legal advisor to the company for the offering.

The company intends to use the proceeds for general corporate purposes, including the repayment of a portion of our outstanding commercial paper.

Deal History:

Announced/Pricing: On August 7, 2017, CenterPoint Energy priced the public offering of 2.5% senior notes due September 1, 2022, for gross proceeds of USD500 million. The notes will be issued at 99.971% of the principal amount and will yield 2.506% upon maturity. The company intends to receive net proceeds of approximately USD495.7 million.

Filing : On January 31, 2017, CenterPoint Energy filed a registration statement with the US Securities and Exchange Commission for public offering of senior debt securities, junior subordinated debt securities, common stock, preferred stock, stock purchase contracts, and equity units from time to time.

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