Published on 9/12/2022 in the Prospect News Investment Grade Daily.
New Issue: CenterPoint Energy Houston sells $800 million of 10- and 30-year bonds
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Sept. 12 – CenterPoint Energy Houston Electric, LLC priced $800 million of general mortgage bonds (A2/A/A) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission and additional details from a market source.
A $500 million tranche of 4.45% 10-year bonds priced at 99.645 to yield 4.494%, or with a 115 basis point spread over Treasuries. Price talk was in the Treasuries plus 140 bps area.
CenterPoint also sold a $300 million tranche of 4.85% 30-year bonds at 99.449 to yield 4.885%, or Treasuries plus 137.5 bps versus talk in the 165 bps area.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, TD Securities (USA) LLC, BNP Paribas Securities Corp. and Truist Securities, Inc.
Proceeds will be used for general limited liability company purposes, including capital expenditures and the repayment of all or a portion of borrowings under the CenterPoint Energy money pool.
The issuer is an indirect wholly owned subsidiary of CenterPoint Energy, Inc., an electric utility based in Houston.
| Issuer: | CenterPoint Energy Houston Electric, LLC
|
| Amount: | $800 million
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| Issue: | General mortgage bonds
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| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, TD Securities (USA) LLC, BNP Paribas Securities Corp. and Truist Securities, Inc.
|
| Co-managers: | AmeriVet Securities, Inc., Great Pacific Securities, MFR Securities, Inc., Penserra Securities LLC and Roberts and Ryan Investments Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Baker Botts LLP and in-house counsel
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Trade date: | Sept. 12
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| Settlement date: | Sept. 15
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| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
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| Distribution: | SEC registered
|
|
|
| 10-year bonds
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| Amount: | $500 million
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| Maturity: | Oct. 1, 2032
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| Coupon: | 4.45%
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| Price: | 99.645
|
| Yield: | 4.494%
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| Spread: | Treasuries plus 115 bps
|
| Call option: | Make-whole call at Treasuries plus 20 bps prior to July 1, 2032, then par call thereafter
|
| Price talk: | Treasuries plus 140 bps area
|
| Cusip: | 15189XAZ1
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|
|
| 30-year bonds
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| Amount: | $300 million
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| Maturity: | Oct. 1, 2052
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| Coupon: | 4.85%
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| Price: | 99.449
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| Yield: | 4.885%
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| Spread: | Treasuries plus 137.5 bps
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| Call option: | Make-whole call at Treasuries plus 25 bps prior to April 1, 2052, then par call thereafter
|
| Price talk: | Treasuries plus 165 bps area
|
| Cusip: | 15189XBA5
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