By Angela McDaniels
Tacoma, Wash., Jan. 20 - CenterPoint Energy, Inc. subsidiary CenterPoint Energy Resources Corp. had received tenders for $397,236,000 principal amount of its $762 million 7.875% senior notes due 2013 as of 5 p.m. ET on Jan. 18, which was the early participation date in an exchange offer that began on Jan. 5.
All of these notes have been accepted, and the company exchanged them on Jan. 20, according to an 8-K filing with the Securities and Exchange Commission.
Holders received 4.5% senior notes due 2021 and cash.
The total exchange price for each $1,000 principal amount of notes tendered by the early participation date was $1,146.25. This consists of $286.56 in cash and $836.62 principal amount of new notes issued at 99.545.
The company issued $342,998,000 of the new notes in exchange for the 7.875% notes.
The new notes form a single series with the $250 million of notes that CenterPoint issued for cash on Jan. 11. They have a make-whole call at Treasuries plus 20 basis points.
Interest on the new notes will accrue from Jan. 11.
Each holder whose 7.875% notes are accepted for exchange will receive a cash payment representing interest, if any, that has accrued up to but excluding the settlement date, reduced by the interest accrued on the new notes up to but excluding the settlement date.
The offer remains open until midnight ET on Feb. 2.
Those who tender after the early participation date but prior to the offer expiration will receive the same amount of notes, but the cash amount will be $256.56 per $1,000 principal amount of notes.
The total exchange price equals the discounted value on the early settlement date of the remaining principal and interest payments on the 7.875% notes, excluding accrued interest, through the maturity date calculated using the bid-side yield of the 2.5% Treasury note due March 31, 2013 as of 11 a.m. ET on Jan. 19 plus 50 basis points.
The cash amount is equal to 25% of the total exchange price, and the principal amount of new notes is equal to 75% of the exchange ratio multiplied by $1,000.
The exchange ratio is the ratio determined by dividing the total exchange price by the new notes value, which equals the discounted value on the early settlement date of the remaining payments of principal and interest, excluding accrued interest, through the maturity of the new notes calculated at the pricing time using the greater of (a) the bid-side yield on the 2.625% U.S. Treasury note due Nov. 15, 2020 and (b) 2.85% plus, in each case, 120 bps.
The exchange offer is only being made to noteholders who are qualified institutional buyers, as defined in Rule 144A under the Securities Act, or persons other than U.S. persons, as defined in Regulation S under the Securities Act.
The information agent is Global Bondholder Services Corp. (866 857-2200 or, for banks and brokerage firms, 212 430-3774).
CenterPoint is a Houston-based energy delivery company.
| Issuer: | CenterPoint Energy Resources Corp.
|
| Issue: | Senior notes
|
| Amount: | $342,998,000
|
| Maturity: | Jan. 15, 2021
|
| Coupon: | 4.5%
|
| Price: | 99.545
|
| Call option: | Make-whole at Treasuries plus 20 bps
|
| Settlement date: | Jan. 20
|
| Total: | $592,998,000, including $250 million issued for cash on Jan. 11
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
