CenterPoint increases early exchange ratio for 2% ZENS until Aug. 2

By Angela McDaniels

Tacoma, Wash., July 26 - CenterPoint Energy, Inc. elected to temporarily increase the early exchange ratio for its 2% zero-premium exchangeable subordinated notes due 2029 (ZENS) to 100%, according to a company news release.

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 Inc. common 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 is applicable while AOL Inc.'s modified Dutch auction tender offer for its common stock is pending. The offer began on June 28 and will end at 5 p.m. ET on Aug. 2. The maximum purchase price for the offer is $400 million.

The company said it elected to make the increase rather than make a reference share offer adjustment or distribute additional interest on the ZENS.

As of Thursday, the reference shares for each ZENS note consist 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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