HubsBaker Botts Represents CenterPoint Energy, Inc. in $5.2 Billion Financing Transactions
Release
Deal Description: On August 22, 2018, CenterPoint Energy, Inc. (NYSE: CNP) (“CenterPoint Energy”) completed an $800 million underwritten public offering of 800,000 shares of its Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share (the “Series A Preferred Offering”), at a price to the public of $1,000 per share.
On October 1, 2018, CenterPoint Energy completed its concurrent underwritten public offerings (the “Concurrent Offerings”) of approximately $1.9 billion of shares of its common stock (“Common Stock”) at a price of $27.25 per share and 19,550,000 depositary shares (the “Depositary Shares”), each representing a 1/20th interest in a share of CenterPoint Energy’s 7.00% Series B Mandatory Convertible Preferred Stock, par value $0.01 per share, at a price of $50 per Depositary Share. The amounts sold included $247.5 million of shares of Common Stock and 2,550,000 Depositary Shares issued pursuant to the exercise in full of the options granted to the underwriters in each of the respective offerings to purchase additional shares of Common Stock and Depositary Shares, respectively.
On October 5, 2018, CenterPoint Energy completed an underwritten public offering of $1.5 billion of senior notes comprised of $500 million aggregate principal amount of its 3.60% senior notes due 2021, $500 million aggregate principal amount of its 3.85% senior notes due 2024 and $500 million aggregate principal amount of its 4.25% senior notes due 2028 (the “Notes Offering”).
CenterPoint Energy intends to use the net proceeds of the Notes Offering, the Concurrent Offerings and the Series A Preferred Offering to finance a portion of the cash consideration payable by CenterPoint Energy in connection with its pending merger with Vectren Corporation, as well as a portion of the related fees and expenses.
Client: CenterPoint Energy, Inc.
Outside Counsel to Underwriters: Hunton Andrews Kurth LLP
Special Counsel to Underwriters: Davis Polk & Wardwell LLP (Depositary Share Offering)
Value: $5.2 Billion
Baker Botts Lawyers/Office Involved:
Corporate: Tim Taylor (Partner, Houston); Clint Rancher (Partner, Houston); Laura Katherine Mann (Senior Associate, Houston); Jamie Yarbrough (Associate, Houston); Stephen Noh (Associate, Houston); Sunil Jamal (Associate, Houston); Hayley Hervieux (Associate, Houston)
Tax: Michael Bresson (Partner, Houston); Katie McEvilly (Associate, Houston)
On October 1, 2018, CenterPoint Energy completed its concurrent underwritten public offerings (the “Concurrent Offerings”) of approximately $1.9 billion of shares of its common stock (“Common Stock”) at a price of $27.25 per share and 19,550,000 depositary shares (the “Depositary Shares”), each representing a 1/20th interest in a share of CenterPoint Energy’s 7.00% Series B Mandatory Convertible Preferred Stock, par value $0.01 per share, at a price of $50 per Depositary Share. The amounts sold included $247.5 million of shares of Common Stock and 2,550,000 Depositary Shares issued pursuant to the exercise in full of the options granted to the underwriters in each of the respective offerings to purchase additional shares of Common Stock and Depositary Shares, respectively.
On October 5, 2018, CenterPoint Energy completed an underwritten public offering of $1.5 billion of senior notes comprised of $500 million aggregate principal amount of its 3.60% senior notes due 2021, $500 million aggregate principal amount of its 3.85% senior notes due 2024 and $500 million aggregate principal amount of its 4.25% senior notes due 2028 (the “Notes Offering”).
CenterPoint Energy intends to use the net proceeds of the Notes Offering, the Concurrent Offerings and the Series A Preferred Offering to finance a portion of the cash consideration payable by CenterPoint Energy in connection with its pending merger with Vectren Corporation, as well as a portion of the related fees and expenses.
Client: CenterPoint Energy, Inc.
Outside Counsel to Underwriters: Hunton Andrews Kurth LLP
Special Counsel to Underwriters: Davis Polk & Wardwell LLP (Depositary Share Offering)
Value: $5.2 Billion
Baker Botts Lawyers/Office Involved:
Corporate: Tim Taylor (Partner, Houston); Clint Rancher (Partner, Houston); Laura Katherine Mann (Senior Associate, Houston); Jamie Yarbrough (Associate, Houston); Stephen Noh (Associate, Houston); Sunil Jamal (Associate, Houston); Hayley Hervieux (Associate, Houston)
Tax: Michael Bresson (Partner, Houston); Katie McEvilly (Associate, Houston)
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