CenterPoint Energy Inc. Enters into Underwriting Agreement for Public Offering of Junior Subordinated Notes

CenterPoint Energy, Inc. recently disclosed its entry into an Underwriting Agreement on October 29, 2024, with leading financial entities, namely BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC. The agreement pertains to the underwritten public offering of $500,000,000 aggregate principal amount of CenterPoint Energy’s 6.700% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series C, due 2055. This offering aligns with the Company’s registration statement on Form S-3 (Registration No. 333-272025).

The Junior Subordinated Notes issued under the Junior Subordinated Indenture, dated August 14, 2024, rank junior and subordinate to the Company’s Senior Indebtedness. Interest on the Notes, starting from October 31, 2024, will be payable semi-annually on May 15 and November 15 annually, maturing on May 15, 2055. The interest rate is 6.700% per annum until May 15, 2030, and will be reset at rates determined by specified factors thereafter.

CenterPoint Energy retains the option to defer interest payments on the Notes, under specific conditions, for up to 20 consecutive semi-annual periods. During such optional deferral periods, certain restrictions on financial actions are imposed. The Company’s strategic deferment of interest aims to manage cash flow effectively.

The Underwriters and their affiliates participating in this offering are experienced financial institutions, engaging in various financial activities. As with standard industry practice, customary compensations are due for their services. This offering, detailed in the Underwriting Agreement and related documents, marks a significant financial decision for CenterPoint Energy.

Additionally, CenterPoint Energy filed the necessary exhibits along with this current report on Form 8-K, including the Underwriting Agreement, the Junior Subordinated Indenture, and the Supplemental Indenture detailing the offering terms.

The Company’s pursuit of this public offering signifies a strategic move to optimize its financial position and capitalize on prevailing market conditions, solidifying its long-term financial strategy.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CenterPoint Energy’s 8K filing here.

CenterPoint Energy Company Profile

CenterPoint Energy, Inc operates as a public utility holding company in the United States. The company operates through two segments, Electric and Natural Gas. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market.