Published on 8/12/2019 in the Prospect News Investment Grade Daily.
New Issue: CenterPoint Energy sells $1.2 billion of senior notes in three parts
By Cristal Cody
Tupelo, Miss., Aug. 12 – CenterPoint Energy, Inc. priced $1.2 billion of senior notes (Baa2/BBB/BBB) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 2.5% five-year notes priced at 99.83 to yield 2.536%, or a Treasuries plus 105 basis points spread.
CenterPoint sold $400 million of 2.95% notes due March 1, 2030 at 99.603 to yield 2.994% and a spread of 135 bps over Treasuries.
A $300 million tranche of 3.7% 30-year notes priced at 99.155 to yield 3.747%. The notes priced with a spread of 162.5 bps over Treasuries.
Bookrunners were BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities, LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG and RBC Capital Markets, LLC.
Proceeds will be used for general corporate purposes, including to repay outstanding commercial paper, to pay a cash dividend to Vectren Corp. stockholders and to fund certain Vectren long-term incentive payments.
CenterPoint Energy is a Houston-based public utility holding company.
| Issuer: | CenterPoint Energy, Inc.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities, LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG and RBC Capital Markets, LLC
|
| Senior co-managers: | BB&T Capital Markets, BNP Paribas Securities Corp., Fifth Third Securities, Inc. and Huntington Investment Co.
|
| Co-managers: | Loop Capital Markets LLC and R. Seelaus & Co., LLC
|
| Trade date: | Aug. 12
|
| Settlement date: | Aug. 14
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2024
|
| Coupon: | 2.5%
|
| Price: | 99.83
|
| Yield: | 2.536%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Aug. 1, 2024 at greater of par or Treasuries plus 20 bps; thereafter at par
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2030
|
| Coupon: | 2.95%
|
| Price: | 99.603
|
| Yield: | 2.994%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call before Dec. 1, 2029 at greater of par or Treasuries plus 25 bps; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 1, 2049
|
| Coupon: | 3.7%
|
| Price: | 99.155
|
| Yield: | 3.747%
|
| Spread: | Treasuries plus 162.5 bps
|
| Call features: | Make-whole call before March 1, 2049 at greater of par or Treasuries plus 25 bps; thereafter at par
|
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