CenterPoint Energy ups conversion rate on 3.75% notes due 2023

By Susanna Moon

Chicago, April 25 - CenterPoint Energy, Inc. said it would raise the conversion rate of its 3.75% convertible senior notes due 2023, the old notes, and 3.75% convertible senior notes series B due 2023, the new notes.

The increase is a result of the April 24 declaration of CenterPoint Energy's regular quarterly cash dividend, payable on June 10, to shareholders of record as of the close of business on May 16.

Under the terms of the indenture governing the notes, the conversion rate will be determined on May 13. The new conversion rate will be provided to holders on or after that date.

Holders of the old notes who submit the notes for conversion on or after May 19 will be entitled to the increased conversion rate.

Holders of the new notes who submit the notes for conversion on or after May 2 will be entitled to the increased conversion rate.

CenterPoint said on April 16 that it would redeem the notes on May 30.

The company said it would pay par in cash plus accrued interest, including any contingent interest, to the redemption date.

At that time, the company said each $1,000 principal amount of notes was convertible into 89.4381 shares of common stock, equivalent to a conversion price of $11.18 per share. They would be convertible until 5 p.m. ET on May 30.

The company's stock (NYSE: CNP) closed at $15.26 on April 15.

CenterPoint said on April 17 that holders of the notes will have the option to require CenterPoint to purchase their notes on May 15 at par plus accrued and unpaid interest to the purchase date.

CenterPoint is a Houston-based energy delivery company.

© 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.