CenterPoint raises $700M in junior subordinated notes due 2058
What's the deal? CenterPoint EnergyDealroom has a profile for this one. Try Dealroom → has raised $700 million through an offering of 6.400% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series E, due 2058. The utility priced the underwritten public offering on July 30, 2026, in a deal spread across a syndicate of underwriters.
Who's involved? Mizuho SecuritiesDealroom has a profile for this one. Try Dealroom → USA, PNC Capital MarketsDealroom has a profile for this one. Try Dealroom →, Scotia CapitalDealroom has a profile for this one. Try Dealroom → (USA), TD SecuritiesDealroom has a profile for this one. Try Dealroom → (USA), and U.S. Bancorp Investments led the offering. Academy Securities, BNP Paribas Securities, and Fifth Third Securities also participated.
The terms: The notes mature August 15, 2058, and pay interest semi-annually on February 15 and August 15, starting February 2027. They carry no sinking fund, and the company can defer interest payments for up to 10 consecutive years.
Why the structure matters? Junior subordinated notes rank below senior debt and can be treated partly as equity by rating agencies. That framing can be credit positive, but any interest deferral would bar CenterPoint from paying dividends or repurchasing stock until deferred interest is cleared.
Where to trade: The notes will be listed on the New York Stock Exchange and NYSE Texas.
The signal: The raise marks a quick re-raise for CenterPoint, which continues to tap long-dated debt markets to fund its capital structure. For utilities, hybrid instruments like these offer a way to add balance-sheet flexibility without diluting shareholders outright — provided the deferral trigger stays untouched.
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Image credit: Tilemahos Efthimiadis
