By Marisa Wong
Los Angeles, June 7 – CenterPoint Energy Resources Corp. priced $500 million of 4.4% senior notes due July 1, 2032 (expected: A3/BBB+/A-) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.908 to yield 4.411%, or a spread of 145 basis points over Treasuries.
The notes will be callable at a make-whole price until three months prior to maturity and then at par.
BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Comerica Securities, Inc. are the joint bookrunners.
Proceeds will support the internal restructuring of the company, aimed for the end of June, according to a 424B5 filing with the SEC.
The issuer is acquiring all of Indiana Gas Co., Inc. and Vectren Energy Delivery of Ohio, LLC. Southern Indiana Gas and Electric Co. is remaining a wholly owned subsidiary of Vectren Utility Holdings, Inc.
Funds would be used to repay intercompany debt owed to CenterPoint Energy, Inc. (the issuer’s indirect parent), which is expected to be assumed by the issuer in the restructuring.
CenterPoint Energy, based in Houston, owns and operates natural gas distribution facilities in four states. After the restructuring, the company will be operating in two additional states.
| Issuer: | CenterPoint Energy Resources Corp.
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | July 1, 2032
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Comerica Securities, Inc.
|
| Co-managers: | Bancroft Capital, LLC and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co.
|
| Counsel to issuer: | Baker Botts LLP and in-house counsel
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Coupon: | 4.4%
|
| Price: | 99.908
|
| Yield: | 4.411%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps prior to April 1, 2032; par call after that
|
| Pricing date: | June 7
|
| Settlement date: | June 9
|
| Expected ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Cusip: | 15189WAP5
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
