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CenterPoint Energy to pay additional interest on 2% ZENS at month-end
By Susanna Moon
Chicago, Oct. 10 - CenterPoint Energy, Inc. said it will pay additional interest on Oct. 31 for its 2% zero-premium exchangeable subordinated notes due 2029 (ZENS).
The company will pay additional interest of $0.0171212 per exchangeable note for holders of record as of the close of business on Oct. 17, according to a press release.
The payment reflects cash distributed for the reference shares attributable to one ZENS note. The amount being distributed was received in connection with the settlement of the 2002 AOL Time Warner, Inc. securities and ERISA class action litigation, the release noted.
As previously reported on July 26, CenterPoint elected to temporarily increase the early exchange ratio for ZENS to 100%.
Each ZENS note was originally exchangeable at the holder's option at any time for an amount of cash equal to 95% of the market value of the reference shares of Time Warner stock attributable to that note. The number and identity of the reference shares attributable to each ZENS note are adjusted for certain corporate events.
The increase was applicable while AOL Inc.'s modified Dutch auction tender offer for its common stock was pending. The offer began on June 28 and ended at 5 p.m. ET on Aug. 2. The maximum purchase price for the offer was $400 million.
The company said, at the time, that it elected to make the increase rather than make a reference share offer adjustment or distribute additional interest on the ZENS.
As of July 26, the reference shares for each ZENS note consisted of 0.5 share of Time Warner common stock, 0.125505 share of Time Warner Cable Inc. common stock and 0.045455 share of AOL common stock.
CenterPoint is a Houston-based energy delivery company.
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