| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2023 > News item |
Morning Commentary: CenterPoint Energy convertible notes price, hold on trading debut
By Abigail W. Adams
Portland, Me., Aug. 2 – There was an uptick of activity in the convertibles secondary space on Wednesday as the first new paper in more than one month made its aftermarket debut.
CenterPoint Energy Inc. priced $900 million of three-year convertible notes after the market close on Tuesday at par with a coupon of 4.25% and an initial conversion premium of 25%.
Pricing came toward the cheap end of talk for a coupon of 3.875% to 4.375% and at the cheap end of talk for and initial conversion premium of 25% to 30%.
The deal was not the one market players had been hoping would reopen the primary with the market saturated with investment-grade utility paper.
However, it played to strong demand at the cheap end of talk although some lost interest as pricing tightened 0.125 point from the cheaps, a source said.
The new paper hit the secondary space with equity markets rolling over from their recent heights.
However, the notes were holding up well despite a heavy day for the market.
The Dow Jones industrial average was down 179 points, or 0.50%, the S&P 500 index was down 0.78%, the Nasdaq Composite index was down 1.34% and the Russell 2000 index was down 1.07% shortly before 11 a.m. ET.
CenterPoint’s new paper dominated activity in the secondary space with the notes accounting for $100 million of the $157 million on the tape about one hour into the session.
There was some “sloppy selling,” early in the session with the notes wrapped around par.
However, they improved as the session progressed and were trading in the 100.125 to 100.375 context early in the session.
CenterPoint’s stock was changing hands at $29.48, a decrease of 0.034%, shortly before 11 a.m. ET.
© 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.