By Wendy Van Sickle
Columbus, Ohio, March 16 – Southern Indiana Gas and Electric Co., wholly owned subsidiary of CenterPoint Energy, Inc., entered into an agreement with some institutional investors on Wednesday to sell $180 million of first mortgage bonds in two parts, according to an 8-K filing with the Securities and Exchange Commission.
The bonds include $100 million of 4.98% series 2023A bonds due March 15, 2028 and $80 million of 5.04% series 2023B bonds due March 15, 2028.
The issuer may prepay the bonds using a make-whole call at Treasuries plus 50 basis points. At least 10% of the outstanding principal amount of the tranche must be redeemed.
Proceeds will be used for general corporate purposes.
CenterPoint Energy is an electric utility based in Houston.
| Issuer: | Southern Indiana Gas and Electric Co.
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| Amount: | $180 million
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| Issue: | First mortgage bonds
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| Placement agent: | Mizuho Securities USA LLC
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| Call: | Make-whole call at Treasuries plus 50 bps for at least 10% of outstanding principal amount
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| Agreement date: | March 15
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| Trustee: | Deutsche Bank Trust Co. Americas
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| Issuer’s counsel: | Chapman and Cutler LLP
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| Purchasers’ counsel: | Hunton Andrews Kurth LLP
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| 2023A bonds
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| Amount: | $100 million
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| Maturity: | March 15, 2028
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| Coupon: | 4.98%
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| PPN: | 843163 B*6
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| 2023B bonds
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| Amount: | $80 million
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| Maturity: | March 15, 2033
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| Coupon: | 5.04%
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| PPN: | 843163 B@4
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