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HOUSTON - CenterPoint Energy, Inc. (NYSE:CNP), currently trading near its 52-week high at $38.36, announced Monday its intention to offer $900 million in Convertible Senior Notes due 2028 through a private placement to qualified institutional buyers under Rule 144A of the Securities Act. According to InvestingPro data, the $25 billion market cap utility maintains relatively low price volatility, making it an interesting watch for stability-focused investors.
The Texas-based utility company also plans to grant initial purchasers an option to buy up to an additional $100 million in convertible notes, according to a press release statement.
The convertible notes will be senior, unsecured obligations maturing on August 1, 2028, with semiannual interest payments beginning February 1, 2026. Prior to May 1, 2028, the notes will be convertible only under certain conditions, after which holders may convert at any time until two days before maturity.
Upon conversion, CenterPoint will pay cash up to the principal amount and may choose to deliver the remainder as cash, common stock, or a combination of both. The company cannot redeem the notes before maturity.
CenterPoint intends to use the proceeds for general corporate purposes, including repayment of outstanding commercial paper and other debt. The debt management initiative comes as InvestingPro analysis shows the company’s total debt stands at $21.6 billion, with a current ratio of 0.79 indicating some pressure on short-term obligations.
The notes and any shares issuable upon conversion will only be offered to qualified institutional buyers in the United States under Rule 144A. The securities have not been registered under the Securities Act and may not be sold without registration or an applicable exemption.
CenterPoint Energy serves more than 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. As of June 30, 2025, the company owned approximately $44 billion in assets and employed about 8,300 people. InvestingPro analysis reveals the company’s strong fundamentals, including a 55-year track record of consecutive dividend payments and annual revenue of $9 billion. For deeper insights into CenterPoint’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, CenterPoint Energy reported its Q2 2025 earnings, which did not meet analysts’ expectations. The company announced an earnings per share (EPS) of $0.29, falling short of the forecasted $0.34, representing a 14.71% miss. Additionally, revenue was reported at 1.94 billion dollars, which was below the anticipated 2.02 billion dollars, marking a 3.96% shortfall. This earnings report highlights some of the challenges CenterPoint Energy is currently facing. Analyst firms might take these results into account when considering future stock ratings. These developments are crucial for investors to monitor as they assess the company’s performance and potential.
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