CenterPoint Energy subsidiary sells three tranches of private mortgage bonds

Southern Indiana Gas and Electric Company, a wholly owned subsidiary of CenterPoint Energy, Inc., entered into a Bond Purchase Agreement on October 20, 2026, to sell first mortgage bonds to institutional investors in a private placement. The filing was made with the U.S. Securities and Exchange Commission under Form 8-K, disclosing the creation of a direct financial obligation.

The transaction consists of three distinct tranches with varying maturity dates and interest rates. The first tranche, Series 2026A, involves the sale of $130 million in bonds due in 2031, carrying an annual interest rate of 5.99%. These bonds are secured by the Amended and Restated Indenture of Mortgage and Deed of Trust dated January 1, 2023, as supplemented by the Seventh Supplemental Indenture dated October 20, 2026. Interest on these bonds will accrue beginning April 15, 2027, and be payable semi-annually on April 15 and October 15 until maturity.

The second tranche, Series 2026B, comprises $80 million in bonds due in 2033 with an interest rate of 6.15%. These are scheduled to be issued on December 15, 2026, under an Eighth Supplemental Indenture. Interest accrual for this series will begin upon issuance, with payments due June 15 and December 15 of each year, starting June 15, 2027.

The third tranche, Series 2027A, involves $50 million in bonds due in 2037 at an interest rate of 6.33%. These are set to be issued on February 25, 2027, pursuant to a Ninth Supplemental Indenture. Interest will begin accruing upon issuance, with payments due February 15 and August 15 of each year, commencing August 15, 2027.

All bonds are secured ratably with Southern Indiana Gas and Electric Company's existing and future first mortgage bonds. The net proceeds will be directed toward general corporate operations, specifically to settle short-term liabilities, refinance long-term debt upon maturity or ahead of it, and support capital projects. Until these funds are deployed, the company may temporarily hold them in interest-bearing instruments, including its parent company's money pool.

Southern Indiana Gas and Electric Company retains the right to prepay all or part of the bonds at any time. Partial prepayments must be in an amount not less than 10% of the aggregate principal amount then outstanding for that tranche. Prepayments are made at 100% of the principal amount plus accrued interest and any applicable make-whole amount. The bonds are unregistered under the Securities Act of 1933 and are subject to transfer restrictions, limiting sales to transactions exempt from registration requirements.

Deutsche Bank Trust Company Americas serves as the trustee for the indenture. The agreement notes that Deutsche Bank and its affiliates have performed other trust, bank, and advisory services for CenterPoint Energy and its subsidiaries in the ordinary course of business. A completed default under the indenture constitutes an event of default under the Bond Purchase Agreement.