CenterPoint Energy announces pricing for $500 million tender offers

HOUSTON - CenterPoint Energy, Inc. (NYSE:CNP), a utility company with a market capitalization of $24.9 billion, announced Thursday the pricing terms for its previously announced cash tender offers for up to $500 million aggregate purchase price of outstanding debt securities. The company currently maintains a total debt position of $21.6 billion, according to InvestingPro data.

The company is offering to purchase up to $300 million of its senior notes and up to $200 million of general mortgage bonds issued by its wholly-owned subsidiary, CenterPoint Energy Houston Electric, LLC. This debt management initiative comes as InvestingPro data shows the company’s current ratio at 0.79, indicating that short-term obligations exceed liquid assets.

According to the announcement, CenterPoint Energy has determined the total consideration to be paid for each $1,000 principal amount of securities validly tendered by the early tender deadline of October 1, 2025, and not withdrawn. The total consideration includes an early tender payment of $30 per $1,000 principal amount.

Due to oversubscription, the company will accept its 2.95% Senior Notes due 2030 on a prorated basis with a proration factor of approximately 12.8%. Similarly, CenterPoint Energy Houston Electric’s 4.50% General Mortgage Bonds due 2044 will be accepted with a proration factor of approximately 3.5%.

CenterPoint Energy expects to settle the tender offers for securities tendered by the early tender deadline on October 6, 2025. The company indicated it expects to accept for purchase the maximum amount of securities, so no additional securities will be purchased after the early settlement date.

The tender offers will officially expire on October 17, 2025, unless extended or terminated earlier. Securities tendered after the early tender deadline, along with those tendered by the early deadline but not accepted, will be returned to holders.

CenterPoint Energy has retained TD Securities (USA) LLC as dealer manager and Global Bondholder Services Corporation as depositary and information agent for the tender offers.

The information is based on a press release statement from the company.

In other recent news, CenterPoint Energy has announced several significant developments. The company revealed a $65 billion capital investment plan extending through 2035, aimed at supporting the increasing electric demand in its service areas, particularly in Texas. Additionally, CenterPoint Energy has launched cash tender offers to repurchase up to $500 million of its outstanding debt securities, targeting a reduction in its indebtedness.

On the financial front, the company updated its long-term financial plan, now supporting 7-9% EPS growth through 2030, and increased its 2025 EPS guidance to $1.75-$1.77, with new guidance for 2026 set at $1.89-$1.91. Following these updates, BMO Capital raised its price target for CenterPoint Energy to $41, maintaining a Market Perform rating. Similarly, Mizuho adjusted its price target to $40, keeping a Neutral rating. Wolfe Research also increased its price target to $43, citing an impressive projected rate base growth of approximately 11% through 2030, supported by solid customer expansion in key service territories. These recent developments reflect CenterPoint Energy’s strategic efforts to enhance its financial and operational standing.

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