CenterPoint Energy Plans $550M Convertible Notes Offering to Refinance Debt

CenterPoint Energy, Inc. (NYSE:CNP) or "CenterPoint" today announced that it intends to offer, subject to market and other conditions, $550 million aggregate principal amount of its Convertible Senior Notes due 2029 (the "convertible notes") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In addition, CenterPoint intends to grant the initial purchasers of the convertible notes the option to purchase up to an additional $50 million aggregate principal amount of convertible notes for settlement within a 13-day period beginning on, and including, the date on which the convertible notes are first issued.

The convertible notes will be senior, unsecured obligations of CenterPoint. The convertible notes will mature on May 15, 2029, unless earlier converted or repurchased. Interest on the convertible notes will be paid semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026. Prior to February 15, 2029, the convertible notes will be convertible only upon the occurrence of certain events and during certain periods. Thereafter, the convertible notes will be convertible by holders at any time in whole or in part until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, CenterPoint will pay cash up to the aggregate principal amount of the convertible notes to be converted and pay or deliver, as the case may be, cash, shares of CenterPoint's common stock, par value $0.01 ("common stock"), or a combination of cash and shares of common stock, at CenterPoint's election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the convertible notes being converted. CenterPoint may not redeem the convertible notes prior to the maturity date. The final terms of the convertible notes, including the interest rate, initial conversion rate and certain other terms of the convertible notes, will be determined at the time of pricing of the offering.

CenterPoint intends to use the net proceeds from this offering for general corporate purposes, including the repayment of a portion of its outstanding commercial paper and other debt.