- CenterPoint Energy, Inc. (CNP, Financial) announces a public offering of $800 million in common stock.
- The offering includes forward sale agreements with a potential additional $120 million in shares.
- Proceeds from the offering may be used for general corporate purposes, including debt repayment.
CenterPoint Energy, Inc. (CNP) has commenced an $800 million registered underwritten offering of its common stock. The offering anticipates shares being borrowed by forward counterparties and sold to underwriters, facilitated by forward sale agreements with Bank of America, Mizuho, and JPMorgan Chase. These agreements allow CenterPoint to issue shares at the underwriters' purchase price, contingent on specific adjustments.
In addition, underwriters are expected to have a 30-day option to purchase up to an additional $120 million in shares, subject to the same terms. If exercised, CenterPoint intends to enter further forward sale agreements for these additional shares. Settlement for these deals is projected on or before February 25, 2027, with options for cash, net share, or physical settlements.
The net proceeds from physically settled forward sale agreements are expected to support general corporate objectives such as repaying commercial paper or other debt. This offering is conducted under CenterPoint's existing shelf registration statement filed with the SEC.
CenterPoint Energy is a Houston-based electric and gas utility serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. As part of the utilities sector, its extensive operations include electric transmission, distribution, power generation, and natural gas distribution. As of March 31, 2025, the company reported owning $44 billion in assets.
