8-KMaterial AgreementsExhibits & Filings

CENTERPOINT ENERGY INC 8-K Report, Material Agreement (Jul 31, 2026)

Filed July 31, 2026For Securities:CNP

Summary

CenterPoint Energy, Inc. (CNP) has announced the entry into an Underwriting Agreement for the public offering of $700 million in aggregate principal amount of 6.400% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series E, due 2058. These notes will be unsecured obligations and rank junior to the company's existing and future senior indebtedness. The offering is being made under a Form S-3 registration statement. The notes will bear a fixed interest rate of 6.400% until August 15, 2033, after which the rate will reset every five years based on the Five-Year Treasury Rate plus a spread of 1.885%. The reset rate will not fall below the initial 6.400%. A key feature of these notes is the company's option to defer interest payments for specified periods, during which dividends and certain debt payments would also be restricted.

Key Highlights

  • 1CenterPoint Energy Inc. is issuing $700 million in Junior Subordinated Notes, Series E, due 2058.
  • 2The notes carry a 6.400% fixed interest rate until August 15, 2033.
  • 3Following 2033, the interest rate will be a floating rate, resetting every five years based on the Five-Year Treasury Rate plus a spread of 1.885%.
  • 4The reset interest rate will have a floor of 6.400%.
  • 5The notes are classified as junior subordinated debt, ranking below senior indebtedness.
  • 6CenterPoint Energy has the option to defer interest payments under certain conditions.
  • 7During any interest deferral period, the company will be restricted from paying dividends on its capital stock and making payments on other junior or equally-ranked debt.

Frequently Asked Questions

The filing indicates an offering of $700 million in junior subordinated notes. While the specific use of proceeds is not detailed in this excerpt, such offerings are typically used for general corporate purposes, refinancing existing debt, or funding capital expenditures.

These notes are junior subordinated debt, meaning they rank below senior debt in the event of bankruptcy or liquidation. Additionally, CenterPoint Energy has the option to defer interest payments, which means investors may not receive interest payments for extended periods. The return of principal is also subject to the company's financial health at maturity.

The interest rate will reset every five years. The new rate will be determined by the prevailing Five-Year Treasury Rate two business days prior to the start of each five-year period, plus a fixed spread of 1.885%. However, the interest rate will not fall below the initial rate of 6.400%.

If CenterPoint Energy exercises its option to defer interest payments, it will be restricted from declaring or paying dividends on its stock, redeeming or repurchasing its stock, and making payments on other debt that ranks equally with or junior to these notes. These restrictions remain in place until the deferred interest is paid.