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CENTERPOINT ENERGY INC 8-K Report, Material Agreement (Aug 29, 2024)

Filed August 29, 2024For Securities:CNP

Summary

CenterPoint Energy Inc. (CNP), through its wholly-owned subsidiary Southern Indiana Gas and Electric Company (SIGECO), has entered into a significant private placement debt offering totaling $325 million. This offering includes two tranches of Series 2024A First Mortgage Bonds: $100 million at 5.18% due 2034 and $60 million at 5.28% due 2036, both issued on August 29, 2024. Additionally, SIGECO will issue $165 million of Series 2025A First Mortgage Bonds at a higher rate of 5.69% due 2055, with issuance expected by January 31, 2025. The proceeds from these bonds are earmarked for general corporate purposes, including the repayment of existing short-term and long-term debt, and to fund capital expenditures such as SIGECO's Posey solar project. These bonds are secured by SIGECO's first mortgage bonds collateral and are being sold in a private placement, meaning they are not registered under the Securities Act of 1933 and are subject to transfer restrictions.

Key Highlights

  • 1SIGECO, a subsidiary of CNP, has secured $325 million in new debt financing through a private placement.
  • 2The financing consists of $160 million in Series 2024A bonds issued immediately and $165 million in Series 2025A bonds to be issued by January 31, 2025.
  • 3Interest rates for the new bonds range from 5.18% to 5.69%, with the later maturing Series 2025A bonds carrying the highest rate.
  • 4Proceeds will be used for general corporate purposes, including debt repayment and capital expenditures, such as the Posey solar project.
  • 5The bonds are secured by SIGECO's first mortgage bonds collateral.
  • 6This offering is a private placement, meaning the bonds are not registered with the SEC and are subject to resale restrictions.

Frequently Asked Questions

SIGECO is issuing a total of $325 million in First Mortgage Bonds. This includes $160 million in Series 2024A bonds and $165 million in Series 2025A bonds.

The proceeds are intended for general corporate purposes, which include repaying short-term and long-term debt, as well as funding capital expenditures like SIGECO's Posey solar project.

No, these bonds are being issued through a private placement and are not registered under the Securities Act of 1933. They are subject to restrictions on transfer and resale.

The Series 2024A Tranche A Bonds are $100 million at 5.18% due in 2034. The Series 2024A Tranche B Bonds are $60 million at 5.28% due in 2036. The Series 2025A Bonds are $165 million at 5.69% due in 2055, to be issued by January 31, 2025.