CenterPoint Energy Houston Electric, LLC announces closing of $1.1 billion offering of general mortgage bonds

Rhea-AI Summary

CenterPoint Energy Houston Electric has successfully concluded a public offering of $1.1 billion in general mortgage bonds, consisting of $400 million of 2.35% bonds maturing in 2031 and $700 million of 3.35% bonds maturing in 2051. Proceeds will address various financial obligations, including the repayment of existing bonds and capital expenditures. The offering was coordinated by several financial institutions, including BNP PARIBAS and Citigroup. Forward-looking statements indicate potential risks affecting future performance due to economic and regulatory factors.

Positive

• Successfully raised $1.1 billion through a bond offering.
• Utilized proceeds to repay $102 million of high-interest bonds and lower debt costs.
• Enhanced liquidity for general corporate purposes.

Negative

• Ongoing risks related to the impact of COVID-19 and economic conditions may affect future financial performance.
• Increased reliance on debt financing could raise future borrowing costs.

HOUSTON, March 11, 2021 /PRNewswire/ -- CenterPoint Energy Houston Electric, LLC (Houston Electric), an indirect, wholly owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), today closed a registered public offering of $400 million principal amount of 2.35% general mortgage bonds due April 1, 2031 and $700 million principal amount of 3.35% general mortgage bonds due April 1, 2051. The net proceeds from the offering will be used for general limited liability company purposes, including capital expenditures and the repayment of (i) all of Houston Electric's outstanding $102 million of 9.15% first mortgage bonds due 2021, (ii) all of Houston Electric's outstanding $300 million of 1.85% general mortgage bonds due 2021 and (iii) all or a portion of Houston Electric's borrowings under the CenterPoint Energy money pool.

BNP PARIBAS, Citigroup, Credit Suisse, TD Securities and Wells Fargo Securities served as representatives and joint book-running managers. Additional joint book-running managers were BNY Mellon Capital Markets, LLC, Comerica Securities, RBC Capital Markets and Truist Securities. C.L. King & Associates, a women-owned business enterprise, served as co-manager. 

This news release does not constitute an offer to sell, or the solicitation of any offer to buy, any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding the use of proceeds from the offering and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include (1) the impact of COVID-19, (2) financial market conditions, (3) general economic conditions, (4) the timing and impact of future regulatory and legislative decisions, (5) effects of competition, (6) weather variations, (7) changes in business plans and (8) other factors discussed in Houston Electric's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and Houston Electric's other filings with the Securities and Exchange Commission. A written prospectus may be obtained by visiting EDGAR on the SEC Website at https://www.sec.gov/.

As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of December 31, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,500 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. 

For more information contact
Media:
Media Relations
Media.Relations@centerpointenergy.com

Investors:
Philip Holder
Phone  713.207.6500

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SOURCE CenterPoint Energy, Inc.

FAQ

What are the terms of CenterPoint Energy's recent bond offering?

CenterPoint Energy Houston Electric closed a public offering of $1.1 billion, including $400 million at 2.35% due in 2031 and $700 million at 3.35% due in 2051.

How will CenterPoint Energy use the proceeds from the bond offering?

The proceeds will be used for capital expenditures and to repay existing debts, including $102 million of 9.15% first mortgage bonds.

What are the potential risks mentioned in CenterPoint Energy's press release?

Risks include the impact of COVID-19, economic conditions, regulatory decisions, and competition that may affect future performance.

Who managed the bond offering for CenterPoint Energy?

The bond offering was managed by BNP PARIBAS, Citigroup, Credit Suisse, TD Securities, and Wells Fargo Securities, among others.

What financial obligations does CenterPoint Energy aim to address with the bond offering?

The offering aims to repay $102 million of high-interest bonds and $300 million of 1.85% general mortgage bonds.