CenterPoint Energy Prices $600M of 2.875% Convertible Senior Notes Due 2029
CenterPoint Energy has priced an upsized $600 million offering of 2.875% convertible senior notes due May 15, 2029, up from the initially planned $550 million. The notes carry an initial conversion rate of 18.6524 shares per $1,000 principal (approximately $53.61/share) and will fund repayment of commercial paper and other debt.
1. Offering Details
CenterPoint Energy priced an upsized offering of $600 million aggregate principal amount of 2.875% convertible senior notes due May 15, 2029, in a private placement to qualified institutional buyers. The sale was increased from $550 million and includes a 13-day option for purchasers to buy an additional $50 million of notes.
2. Conversion Features
The notes will bear interest semiannually at 2.875% and are senior unsecured obligations. The initial conversion rate is set at 18.6524 shares per $1,000 principal, equating to a conversion price of approximately $53.61 per share, with adjustments under specified conditions.
3. Use of Proceeds and Impact
Proceeds netting approximately $592.1 million (or $641.5 million if the full option is exercised) will be allocated to repay commercial paper and other debt, reinforcing the company’s liquidity and potentially reducing short-term borrowing costs.