By Wendy Van Sickle
Columbus, Ohio, Oct. 16 – Southern Indiana Gas and Electric Co., a wholly owned subsidiary of CenterPoint Energy, Inc., entered into an agreement with some institutional investors on Friday to sell $470 million of first mortgage bonds, series 2023B, in three parts, according to an 8-K filing with the Securities and Exchange Commission.
The bonds include$180 million of tranche A 5.75% first mortgage bonds due March 15, 2029; $105 million of tranche B 5.91% first mortgage bonds due Oct. 15, 2030; and $185 million of tranche C 6% first mortgage bonds due March 15, 2034.
The issuer may prepay the bonds using a make-whole call. At least 10% of the outstanding principal amount of the tranche must be redeemed.
Mizuho Securities USA LLC, BofA Securities, Inc. and U.S. Bancorp Investments, Inc. are the placement agents.
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: | $470 million
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| Issue: | First mortgage bonds
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| Placement agents: | Mizuho Securities USA LLC, BofA Securities, Inc. and U.S. Bancorp Investments, Inc.
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| Call: | Make-whole call for at least 10% of outstanding principal amount
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| Agreement date: | Oct. 13
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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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|
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| Tranche A bonds
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| Amount: | $180 million
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| Maturity: | March 15, 2029
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| Coupon: | 5.75%
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|
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| Tranche B bonds
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| Amount: | $105 million
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| Maturity: | Oct. 15, 2030
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| Coupon: | 5.91%
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|
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| Tranche C bonds
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| Amount: | $185 million
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| Maturity: | March 15, 2034
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| Coupon: | 6%
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