- CenterPoint Energy (CNP, Financial) announces cash tender offers totaling up to $1,000,000,000 for certain outstanding notes.
- The primary goal is to reduce outstanding indebtedness through the purchase of specific senior notes by May 23, 2025.
- Early tender participants are eligible for additional payments, with settlement dates in May 2025.
CenterPoint Energy, Inc. (CNP) has announced the initiation of cash tender offers for its outstanding notes, aiming for a total aggregate purchase price of up to $1 billion. This initiative includes purchasing specified series of senior notes issued by CenterPoint Energy as well as by its wholly-owned subsidiary, CenterPoint Energy Resources Corp. (CERC).
Of the $1 billion maximum, $600 million is allocated for CenterPoint Energy's senior notes, including the 5.25% Senior Notes due 2026, 3.70% Senior Notes due 2049, and others. The remaining $400 million is designated for CERC's senior notes, such as the 4.10% Senior Notes due 2047 and others, with a specific cap for the CERC 2047 notes set at $150 million.
The tender offers are structured to give priority based on acceptance levels, as outlined in the offer details. By May 8, 2025, holders who tender their notes early will be eligible for a total consideration which includes an early tender payment. Regular tender consideration applies to notes tendered by the final expiration date of May 23, 2025.
These offers, contingent upon certain conditions, are primarily intended to manage and reduce the company's outstanding debt. Settlement of early tenders is expected by May 13, 2025, while final tender settlements may occur by May 28, 2025, depending on purchase volumes and adherence to the set maximum tender amounts.
CenterPoint Energy has engaged Barclays Capital Inc., TD Securities (USA) LLC, and U.S. Bancorp Investments, Inc. as Dealer Managers to facilitate these tender offers. For any further information regarding tender procedures, holders are advised to consult the provided contact avenues or their financial advisors.
