CenterPoint plans $1,000-par fixed-to-floating perpetual preferreds

By James McCandless

San Antonio, Aug. 14 – CenterPoint Energy, Inc. plans to price an offering of $1,000 par series A fixed-to-floating rate cumulative redeemable perpetual preferred stock (Baa1/BBB/BB+), according to a 424B5 filing with the Securities and Exchange Commission.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners.

The size of the issue is expected to be about $500 million, according to ratings announcements from both S&P Global Ratings and Moody’s Investors Service.

The preferreds are redeemable after five years.

CenterPoint plans to use the proceeds to finance its merger with Vectren Corp. and to pay related fees and expenses.

The company does not plan to list the preferreds on any securities exchange.

CenterPoint is a Houston-based public utility holding company.

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