CenterPoint Energy's $500MM Convertible Notes Rated 'BBB-' by Fitch Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 12, 2003 CenterPoint Energy CenterPoint Energy (NYSE: CNP) is an electric and natural gas utility serving several markets in the U.S. states of Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. , Inc.'s (CNP (Certified Network Professional) A professional designation and accreditation given to individual IT networking professionals by the Network Professional Association (www.npa.org). ) $225 million 2.875% convertible senior notes due 2024 are rated 'BBB-' by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . The notes will rank equally with other senior unsecured obligations of CNP. The Rating Outlook is Negative. Proceeds from the new notes are expected to be utilized by CNP to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. a portion of its outstanding $250 million 8.125% trust preferred securities (issued by HL&P Capital Trust I). The notes are convertible into shares of CNP common stock under certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or at the option of the holder and are callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. at par anytime after Jan. 15, 2007. In addition, noteholders have the right to require CNP to purchase the notes at par on Jan. 15, 2007, Jan. 15, 2012, and Jan. 15, 2017. Because the first put option date is in January 2007, Fitch effectively views the notes as a three year security. The notes are also putable to CNP upon the occurrence of a 'fundamental change'. However, Fitch does not consider the put option in the event of a fundamental change to be a near term liquidity concern given the limited circumstances under which it can be exercised. Defined changes include the sale of substantially all of CNP's assets or the acquisition by a person or group of more than 50% of CNP's outstanding common stock. For a discussion of CNP's current rating and Rating Outlook, please refer to a separate Fitch press release dated Dec. 10, 2003 and available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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