CenterPoint Energy Inc. will invest the proceeds from the early redemption of Enable Midstream LP’s $363 million in senior notes that are payable to CenterPoint Energy Resources Corp. The companies entered an agreement, CenterPoint said Jan. 29.
CenterPoint will invest the proceeds from the redemption in Enable's 10% Series A perpetual preferred units, and the transaction is scheduled to close before the end of first-quarter 2016, subject to CenterPoint’s completion of its review of Enable’s audited year-end 2015 financial statements and other conditions.
The senior notes will fund the preferred securities investment, and no other sources or cash from operations will be used, CenterPoint said.
Bill Rogers, CenterPoint’s CFO, said the investment will strengthen Enable’s capital structure, metrics and liquidity and eliminate debts due in 2017.
CenterPoint Energy Inc.is based in Houston.
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