Centerpoint to pay $64 million, cut future deductions under tax agreement for 2%, 7% convertibles

By Jennifer Chiou

New York, July 20 - Centerpoint Energy, Inc. will pay $64 million and reduce future deductions under an agreement with the Internal Revenue Service Appeals division over the tax treatment of its 2% Zero-Premium Exchangeable Subordinated Notes (ZENS) and former 7% Automatic Common Exchange Securities, according to an 8-K filing with the Securities and Exchange Commission.

On July 17, the company signed a closing agreement for the tax years 1999 through 2029 for the ZENS.

According to the filing, the agreement is subject to approval by the Joint Committee on Taxation of the U.S. Congress.

Under the agreement, the Houston-based energy delivery company will pay about $64 million in previously accrued taxes associated with the securities will reduce its future interest deductions associated with the ZENS.

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