WASHINGTON (dpa-AFX) - CenterPoint Energy Inc. (CNP) announced late Tuesday the pricing of a registered underwritten offering of around 21.62 million shares of its common stock at a price to the public of $37.00 per share.
Closing of the offering is expected to occur on or about May 29.
In connection with the offering, the electric and gas utility entered into separate forward sale agreements with each of Bank of America, N.A., Mizuho Markets Americas LLC and JPMorgan Chase Bank, National Association. Under the deal, the company agreed to issue and sell an aggregate of around 21.62 million shares of its common stock to the forward counterparties.
In the offering, all shares would be borrowed by the forward counterparties or their respective affiliates from third parties, subject to certain conditions. They will be sold to the underwriters and offered in connection with the forward sale agreements.
CenterPoint said it has agreed to issue and sell shares to the underwriters to the extent that the forward counterparties or their respective affiliates do not borrow and sell such number of shares.
In addition, the underwriters of the offering have been granted a 30-day option to purchase up to an additional 3.24 million shares of CenterPoint's common stock upon the same terms.
For the offering, BofA Securities, Mizuho and J.P. Morgan are acting as joint book-running managers and representatives. Further, Barclays, Citigroup, RBC Capital Markets and MUFG are acting as joint book-running managers, while BMO Capital Markets and Scotiabank are acting as co-managers.
Additional forward sale agreements with the forward counterparties would be entered if the underwriters exercise all or a portion of their option to purchase additional shares.
The company expects the settlement of the forward sale agreements to occur on or prior to February 25, 2027, and it may elect cash or net share settlement for all or a portion of its rights or obligations under each of the forward sale agreements.
On the NYSE, CenterPoint closed Tuesday's trading 0.4 percent higher at $37.73, while it fell 2% in the extended trading to $37.00.
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