Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for CenterPoint Energy, Inc. > News item |
CenterPoint Energy convertibles to pay contingent interest
By Laura Lutz
Des Moines, Jan. 12 - CenterPoint Energy, Inc. announced that its 2.875% convertible senior notes due 2024 will accrue contingent interest for the six months beginning on Jan. 15.
Under the terms of the indenture, the notes will accrue contingent interest of 0.333% in addition to regular interest.
As previously reported, the company plans to redeem all of its outstanding 2.875% notes 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 principal amount and issue shares beyond that.
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.
On Dec. 21, 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. The company's stock closed down 3 cents, or 0.18%, at $16.84 on Jan. 12 (NYSE: CNP).
© 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.