By Abigail W. Adams
Portland, Me., Aug. 2 – CenterPoint Energy Inc. priced $900 million of three-year convertible notes after the market close on Tuesday at par with a coupon of 4.25% and an initial conversion premium of 25%, according to a company news release.
Pricing came toward the cheap end of talk for a coupon of 3.875% to 4.375% and at the cheap end of talk for and initial conversion premium of 25% to 30%, according to a market source.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Wells Fargo Securities LLC were bookrunners for the Rule 144A offering, which carries a greenshoe of $100 million.
The notes are non-callable.
There is takeover and dividend protection above 19 cents a quarter.
The convertibles will be settled in cash up to the principal amount with any remaining amount to be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used for general corporate purposes, including the redemption of the company’s series A preferred stock after its call date and the repayment of a portion of its commercial paper.
CenterPoint Energy is a Houston-based utility company.
| Issuer: | CenterPoint Energy Inc.
|
| Amount: | $900 million
|
| Greenshoe: | $100 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Aug. 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Wells Fargo Securities LLC
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 25%
|
| Conversion price: | $36.86
|
| Conversion rate: | 27.1278
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Aug. 1
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.875% to 4.375% and initial conversion premium of 25% to 30%
|
| Stock symbol: | NYSE: CNP
|
| Stock price: | $29.49
|
| Market capitalization: | $18.61 billion
|
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