Deal Description: CenterPoint Energy, Inc. (NYSE: CNP) today announced a landmark transaction to further strengthen and fortify its financial position, enhance shareholder value and advance the interests of all stakeholders. Today's announced transaction has three key elements: a $1.4 billion equity investment; the appointment of two new highly credentialed and qualified directors to CenterPoint Energy’s Board of Directors; and the creation of a new Business Review and Evaluation Committee of CenterPoint Energy’s Board of Directors.
The $1.4 billion equity investment includes $725 million in mandatory convertible preferred stock and $675 million in common stock. A mix of new and current investors are providing the new equity capital to CenterPoint Energy, including affiliates of Elliott Management Corporation, Fidelity Management & Research Company, Bluescape Energy Partners and other long-term oriented, well-established mutual fund families. The initial conversion price of the preferred stock is $15.31 per share, and the shares of common stock were issued at $16.08 per share.
Baker Botts represented CenterPoint Energy in the transaction.
Baker Botts Lawyers/Office Involved:
For more information, please see CenterPoint Energy’s news release here.
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