CenterPoint opts for reference share adjustment on 2% exchangeables

By Susanna Moon

Chicago, Jan. 3 – CenterPoint Energy, Inc. said it will make a reference share offer adjustment and distribute any additional interest on its 2% zero-premium exchangeable subordinated notes due 2029 rather than electing to increase the early exchange ratio to 100% during Meredith Corp.’s tender offer for the outstanding common shares of Time Inc.

The distributions of additional interest on the exchangeables are expected to be made by CenterPoint Energy in connection with Meredith’s tender and the subsequent acquisition of Time Inc., according to a company announcement.

CenterPoint’s distribution of additional interest in connection with the reference share offer is expected to be proportionate to the percentage of eligible shares that are tendered by Time shareholders in Meredith’s tender, the release added.

As of Wednesday, the reference shares for each exchangeable consist of 0.5 share of Time Warner Inc. common stock, 0.0625 share of Time Inc. common stock and 0.061382 share of Charter Communications, Inc. common stock, the filing said.

After the merger, the reference shares for each exchangeable will consist of 0.5 share of Time Warner Inc. common stock and 0.061382 share of Charter Communications, Inc. common stock.

Meredith’s tender will end one minute after 11:59 p.m. on Jan. 10 and then the company expects to acquire all remaining shares of Time for the same cash price in the subsequent merger.

CenterPoint is an electric utility based in Houston.

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