On October 3, 2025 CenterPoint Energy, Inc. announced the pricing of a cash tender offer to purchase up to $300 million of its 3.70% Senior Notes due 2049, 2.65% Senior Notes due 2031, and 2.95% Senior Notes due 2030, and up to $200 million of its 4.25% General Mortgage Bonds, Series AC due 2049 and 4.50% General Mortgage Bonds, Series X due 2044. The announcement provides the reference yield, fixed spread, tender offer yield, and total consideration for each series, allowing investors to assess the cost of repurchasing the debt.
The 3.70% Senior Notes due 2049 have a principal outstanding of $165.3 million, a reference yield of 4.75%, a fixed spread of 4.714 bps, a tender offer yield of 5.714 %, and a total consideration of $739.17 per $1,000 principal. The 2.65% Senior Notes due 2031 have a principal outstanding of $500 million, a reference yield of 3.625%, a fixed spread of 3.702 bps, a tender offer yield of 4.352 %, and a total consideration of $915.49 per $1,000 principal. The 2.95% Senior Notes due 2030 have a principal outstanding of $400 million, a reference yield of 3.625%, a fixed spread of 3.702 bps, a tender offer yield of 4.202 %, and a total consideration of $950.13 per $1,000 principal. The 4.25% General Mortgage Bonds, Series AC due 2049 have a principal outstanding of $700 million, a reference yield of 4.75%, a fixed spread of 4.714 bps, a tender offer yield of 5.364 %, and a total consideration of $852.69 per $1,000 principal. The 4.50% General Mortgage Bonds, Series X due 2044 have a principal outstanding of $600 million, a reference yield of 4.875%, a fixed spread of 4.680 bps, a tender offer yield of 5.330 %, and a total consideration of $903.16 per $1,000 principal.
The tender offer pricing reflects current market conditions and provides a clear cost structure for the repurchase of up to $500 million of debt. Early results show that 56% of the 2.65% Senior Notes due 2031 and 71% of the 2.95% Senior Notes due 2030 have already been tendered, indicating strong investor participation. By reducing its debt load, CenterPoint can improve its capital structure, potentially lower borrowing costs, and create value for shareholders. The announcement is a material financing event that directly impacts the company’s financial position and is a new development not previously reported.
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