Summary
CenterPoint Energy, Inc. (CNP) announced two key actions regarding its 2.875% Convertible Senior Notes due 2024. Firstly, the company plans to redeem these notes on January 22, 2007. This redemption means the notes will be paid off on that date, impacting holders who may wish to convert or sell them prior to redemption. Secondly, CenterPoint Energy has extended the deadline for holders to exercise their option to require the company to purchase their notes. This purchase option, which was set to expire on January 12, 2007, has been pushed back to midnight on the same date. This extension provides noteholders with additional time to consider their options regarding the upcoming redemption.
Key Highlights
- 1CenterPoint Energy (CNP) announced the planned redemption of its 2.875% Convertible Senior Notes due 2024.
- 2The redemption date for these notes is scheduled for January 22, 2007.
- 3The company has extended the deadline for holders to exercise their option to sell their notes back to CenterPoint Energy.
- 4The new expiration for the purchase option is 12:00 Midnight, New York City time, on Friday, January 12, 2007.
- 5The original expiration for the purchase option was 5:00 p.m., New York City time, on January 12, 2007.
- 6This filing includes a press release detailing these announcements.
Frequently Asked Questions
CenterPoint Energy is planning to redeem these notes on January 22, 2007. This means the company will pay off the principal amount of these notes on that date.
The extension provides noteholders with more time, until midnight on January 12, 2007, to decide whether to exercise their option to have CenterPoint Energy purchase their notes. This gives them additional flexibility before the redemption date.
The redemption date of January 22, 2007, is the date by which the notes will be paid off by CenterPoint Energy. Noteholders should be aware of this date for their financial planning and any potential conversion or sale decisions.
A press release dated December 21, 2006, attached as Exhibit 99.1 to this filing, provides further details on the redemption and the extended purchase option.