CenterPoint Energy calls 2.875% convertibles due 2024

By Laura Lutz

Washington, Dec. 21 - CenterPoint Energy, Inc. announced that it plans to redeem all of its outstanding 2.875% convertible senior notes due 2024 on Jan. 22.

At any time before 5 p.m. ET on Jan. 22, holders may convert the notes into cash or common shares, at CenterPoint's option, at a conversion rate of 79.8969 shares per $1,000 principal amount, or $12.51613 per share. The company plans to pay cash for converted notes up to the principle amount and issue shares to satisfy any conversion obligation above the principal amount.

The company's shares closed down 0.12, or 0.72%, at $16.49 on Thursday (NYSE: CNP).

Notes not converted before the redemption date will be redeemed for par plus accrued interest of $0.559.

Holders who convert their notes between 5 p.m. ET on Jan. 1 and 9 a.m. ET Jan. 15 must pay $14.375 per $1,000 principal amount of notes, which is equal to the interest payable on the notes on Jan. 15.

The company also extended the purchase option on the notes to midnight ET on Jan. 12 from 5 p.m. ET on the same day.

CenterPoint is a Houston-based energy delivery company.

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