By Cristal Cody
Chicago, May 11 – CenterPoint Energy, Inc. sold $1.7 billion of notes (Baa2/BBB/BBB) in three parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission and a market source.
The company sold $700 million of three-year floating-rate senior notes with a coupon based on SOFR plus 65 basis points. The notes were sold at par.
The three-year floating-rate notes can be redeemed at par plus interest after May 13, 2022.
CenterPoint also sold $500 million of 1.45% five-year senior notes with a spread of Treasuries plus 70 bps. Talk was higher for the tranche in the Treasuries plus 95 bps area.
The fixed-rate notes due 2026 priced at 99.767 to yield 1.498%.
The 2026 notes can be redeemed early with a make-whole premium of Treasuries plus 10 bps until one month before maturity when the notes can be optionally called at par plus interest.
A second tranche of fixed-rate notes was sold with a 2.65% coupon and a June 1, 2031 maturity date.
The notes priced with a spread of Treasuries plus 105 bps, low to talk in the Treasuries plus 130 bps area.
The tranche sold at 99.806 for a 2.672% yield.
The notes can be called with a make-whole premium of Treasuries plus 15 bps until March 1, 2031 and then can be called at par plus interest.
BofA Securities, Inc., Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Scotia Capital (USA) Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes, including the repayment of the remaining $700 million of borrowings under the company’s term loan agreement, which matures on June 14, 2021, all or a portion of its outstanding $500 million 3.6% senior notes due 2021 and a portion of its outstanding commercial paper.
The public utility holding company is based in Houston.
| Issuer: | CenterPoint Energy, Inc.
|
| Issue: | Floating-rate and fixed-rate notes
|
| Amount: | $1.7 billion
|
| Bookrunners: | BofA Securities, Inc., Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Scotia Capital (USA) Inc.
|
| Co-manager: | R. Seelaus & Co., LLC
|
| Trade date: | May 11
|
| Settlement date: | May 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2024 floaters
|
| Amount: | $700 million
|
| Issue: | Floating-rate senior notes
|
| Maturity: | May 13, 2024
|
| Coupon: | SOFR plus 65 bps
|
| Price: | Par
|
| Yield: | SOFR plus 65 bps
|
| Call features: | Non-callable until May 13, 2022, then at par
|
|
|
| 2026 notes
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | June 1, 2026
|
| Coupon: | 1.45%
|
| Price: | 99.767
|
| Yield: | 1.498%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps until May 1, 2026; thereafter at par
|
| Price talk: | Treasuries plus 95 bps area
|
|
|
| 2031 notes
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | June 1, 2031
|
| Coupon: | 2.65%
|
| Price: | 99.806
|
| Yield: | 2.672%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until March 1, 2031; thereafter at par
|
| Price talk: | Treasuries plus 130 bps
|
|
|
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