CenterPoint Energy Receives $1.4 Bln Equity Investment From Elliott And Others

(RTTNews) - CenterPoint Energy Inc. (CNP) announced a $1.4 billion equity investment from Elliott Management Corporation, Fidelity Management & Research Company, Bluescape Energy Partners and others. The investment includes $725 million in mandatory convertible preferred shares and $675 million in common shares.

CNP is trading at $17.83, up $1.85 or 11.58 percent.

The company noted that proceeds from the investments will be primarily applied to de-leverage the balance sheet to strengthen the Company's credit profile.

As a result of today's financing, CenterPoint Energy said it no longer anticipates additional equity needs through 2022.

CenterPoint Energy has increased its board composition with the appointment of two new directors, David Lesar and Barry Smitherman, bringing the total number of directors on the Board to 10.

The company said its board has formed a new Business Review and Evaluation Committee of the Board. It will provide advice and recommendations to the Board regarding analyzing and executing on a comprehensive range of potential value-maximizing strategic business actions and alternatives related to the company's current configuration and alignment of businesses.

The Committee is expected to conclude its work and make recommendations to the Board by October 2020.