Centerpoint To Invest $363 Mln In Enable Midstream; Buy Continuum Energy's Unit

(RTTNews) - CenterPoint Energy, Inc. (CNP) said it has entered into an agreement with Enable Midstream Partners, LP (ENBL), regarding the early redemption of $363 million of notes payable to CenterPoint Energy Resources Corp., a CenterPoint indirect, wholly-owned subsidiary.

CenterPoint will invest the proceeds from the redemption in Enable's 10 percent Series A Fixed-to-Floating Non-Cumulative Redeemable Perpetual Preferred Units. The transaction is expected to close prior to the end of the first quarter of 2016 and is expected to be accretive to CenterPoint's earnings.

"CenterPoint believes this investment will strengthen Enable's capital structure, improve their credit metrics and financial liquidity, and eliminate debt maturities otherwise due in 2017," said Bill Rogers, chief financial officer of CenterPoint Energy.

In a separate statement, CenterPoint Energy Services, Inc., or CES, an indirect, wholly-owned subsidiary of CenterPoint Energy, and Continuum Energy, LLC, along with its wholly-owned subsidiary, Continuum Energy Services, LLC, said CES has agreed to acquire Continuum's retail energy services business through the acquisition of Continuum Retail Energy Services, LLC, including its wholly-owned subsidiary Lakeshore Energy Services, LLC.

The acquisition also includes the natural gas wholesale assets of Continuum Energy Services. The aggregate purchase price for the acquisition is $77.5 million plus working capital, subject to customary post-closing purchase price adjustments.

With the addition of these businesses, CES would operate in 26 states and serve nearly 24,000 commercial and industrial customers and more than 65,000 individual Choice customers.

The transaction, expected to close in the first quarter of 2016, is projected to be earnings per share accretive in 2016 and subsequent years.