Published on 10/4/2018 in the Prospect News Investment Grade Daily.
New Issue: CenterPoint prices $1.5 billion of senior notes due 2021, 2024, 2028
By Devika Patel
Knoxville, Tenn., Oct. 4 – CenterPoint Energy, Inc. priced a $1.5 billion issue of fixed-rate senior notes (Baa1/BBB+/BBB) in three parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The 3.6% notes due Nov. 1, 2021 priced at 99.971 to yield 3.609% in a $500 million tranche at a spread of Treasuries plus 67 basis points.
CenterPoint sold $500 million of 3.85% notes due Feb. 1, 2024 at 85 bps over Treasuries. These notes priced at 99.928 to yield 3.866%.
There was $500 million of 4.25% notes due Nov. 1, 2028 at 115 bps over Treasuries. These notes priced at 99.599 to yield 4.299%.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, PNC Capital Markets LLC, Regions Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to fund acquisition costs for the company’s merger with Vectren Corp. If the merger is not completed on or before Oct. 31, 2019, the notes have a special call at 101%.
Proceeds will also be used for general corporate purposes, including repaying a portion of the company’s borrowings under the CenterPoint Energy money pool, retiring its 6.125% senior notes due 2017 and redeeming its 6% senior notes due 2018.
CenterPoint Energy is a Houston-based public utility holding company.
| Issuer: | CenterPoint Energy, Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, PNC Capital Markets LLC, Regions Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Senior co-managers: | BNY Mellon Capital Markets LLC and Comerica Securities, Inc.
|
| Co-managers: | Guggenheim Securities, LLC and Loop Capital Markets LLC
|
| Trade date: | Oct. 3
|
| Settlement date: | Oct. 5
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2021 notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 3.6%
|
| Price: | 99.971
|
| Yield: | 3.609%
|
| Spread: | Treasuries plus 67 bps
|
| Call feature: | Make-whole call at Treasuries plus 12.5 bps
|
| Special call: | The notes may be called at any time before Oct. 31, 2019 at 101% if the issuer determines that the Vectren merger will not be completed before 5 p.m. ET on Oct. 31, 2019
|
|
|
| 2024 notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2024
|
| Coupon: | 3.85%
|
| Price: | 99.928
|
| Yield: | 3.866%
|
| Spread: | Treasuries plus 85 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Jan. 1, 2024, then a par call
|
| Special call: | The notes may be called at any time before Oct. 31, 2019 at 101% if the issuer determines that the Vectren merger will not be completed before 5 p.m. ET on Oct. 31, 2019
|
|
|
| 2028 notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2028
|
| Coupon: | 4.25%
|
| Price: | 99.599
|
| Yield: | 4.299%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Aug. 1, 2028, then a par call
|
| Special call: | The notes may be called at any time before Oct. 31, 2019 at 101% if the issuer determines that the Vectren merger will not be completed before 5 p.m. ET on Oct. 31, 2019
|
© 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.
