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CenterPoint Energy Resources sells $600M of senior notes to repay debt

CenterPoint Energy Inc. subsidiary CenterPoint Energy Resources Corp. completed the sale of $600 million of its senior notes to repay a portion of borrowings under the CenterPoint money pool and commercial paper, according to a March 26 free writing prospectus.

As of Dec. 31, 2017, the company had $570 million of outstanding borrowings under the money pool and $898 million of commercial paper borrowings.

The company sold $300 million of its 3.55% notes April 1, 2023, and $300 million of its 4% notes due April 1, 2028. Interest on the notes is payable semiannually on April 1 and Oct. 1 of each year, starting Oct. 1.

The 2023 notes have a spread to benchmark Treasury of 97 basis points and the 2028 notes have a spread to benchmark Treasury of 117 basis points. The issue was expected to be rated Baa2 by Moody's, A- by S&P Global Ratings and BBB by Fitch Ratings.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch Pierce Fenner & Smith Inc., MUFG Securities Americas Inc., Barclays Capital Inc., J.P. Morgan Securities LLC, Regions Securities LLC and U.S. Bancorp Investments Inc. acted as joint book-running managers.

Mischler Financial Group Inc. and The Williams Capital Group LP served as co-managers.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.