sctovi
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
Tender Offer Statement
under Section 14(d)(1) or 13(e)(1) of the Securities Exchange Act of 1934
CenterPoint Energy, Inc.
(Name of Subject Company (issuer))
CenterPoint Energy, Inc.
(Names of Filing Persons (identifying status as offeror, issuer or other person)
3.75% Convertible Senior Notes Due 2023
3.75% Convertible Senior Notes, Series B Due 2023
(Title of Class of Securities)
15189TAA5 and 15189TAC1
15189TAM9
(CUSIP Number of Class of Securities)
Rufus S. Scott
Senior Vice President, Deputy General Counsel and Assistant Corporate Secretary
CenterPoint Energy, Inc.
1111 Louisiana
Houston, Texas 77002
(713) 207-1111
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications on Behalf of Filing Persons)
Copy to:
Gerald M. Spedale
Baker Botts L.L.P.
One Shell Plaza
910 Louisiana
Houston, Texas 77002-4995
(713) 229-1234
CALCULATION OF FILING FEE
|
|
|
|
|
|
|
|
|
|
Transaction Valuation* |
|
|
Amount of Filing Fee** |
|
|
$390,851,000
|
|
|
$ |
15,360 |
|
|
|
* |
|
For purposes of calculating amount of filing fee only. The transaction valuation upon which
the filing fee was based was calculated as follows: The purchase price of the 3.75%
Convertible Senior Notes due 2023 and the 3.75% Convertible Senior Notes, Series B due 2023,
each as described herein, is $1,000 per $1,000 principal amount outstanding. As of April 15,
2008, there was $390,851,000 aggregate principal amount outstanding, resulting in an aggregate
purchase price of $390,851,000. |
|
** |
|
The amount of the filing fee equals $39.30 per $1 million of the value of the transaction. |
|
|
|
o
|
|
Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and
identify the filing with which the offsetting fee was previously paid. Identify the
previous filing registration statement number, or the Form or Schedule and the date of
its filing. |
o
|
|
Check the box if the filing relates solely to preliminary communications made before
the commencement of a tender offer. |
Check the appropriate boxes below to designate any transactions to which the statement relates:
|
|
|
|
|
|
|
o
|
|
third-party tender offer subject to Rule 14d-1. |
|
|
þ
|
|
issuer tender offer subject to Rule 13e-4. |
|
|
o
|
|
going-private transaction subject to Rule 13e-3. |
|
|
o
|
|
amendment to Schedule 13D under Rule 13d-2. |
Check the
following box if the filing is a final amendment reporting the results of the tender offer: o
This Tender Offer Statement on Schedule TO is filed by CenterPoint Energy, Inc., a Texas
corporation (the Company), and relates to the Companys offer to purchase the 3.75% Convertible
Senior Notes due 2023 (the Old Notes) and the 3.75% Convertible Senior Notes, Series B due 2023
(the New Notes and, together with the Old Notes, the Notes) that were issued by the Company
upon the terms and conditions set forth in the Indenture (as defined below), the Company Notice
dated April 17, 2008 (the Company Notice), and the related offer materials filed as Exhibits
(a)(1)(B) to (a)(1)(E) to this Schedule TO (which Company Notice and related offer materials, as
amended or supplemented from time to time, collectively constitute the Option Materials).
The Notes were issued pursuant to the Indenture dated as of May 19, 2003 (the Original
Indenture) by and between the Company and The Bank of New York Trust Company, National Association
(successor to JPMorgan Chase Bank), as Trustee (the Trustee), as amended and supplemented by
Supplemental Indenture No. 1 dated as of May 19, 2003 (Supplemental Indenture No. 1), under which
the Old Notes were issued, and Supplemental Indenture No. 6 dated as of August 23, 2005
(Supplemental Indenture No. 6), under which the New Notes were issued (such Original Indenture,
as amended and supplemented by Supplemental Indenture No. 1 and Supplemental Indenture No. 6, the
Indenture). Capitalized terms used but not defined herein shall have the respective meanings
ascribed to such terms in the Indenture.
On April 16, 2008, the Company announced that it had called for redemption all of the
outstanding Notes on May 30, 2008 (the Redemption Date). The redemption price will be $1,000 in
cash plus accrued and unpaid interest, including contingent interest, if any, to the Redemption
Date. The amount of regular interest that will be payable with respect to the Notes on the
Redemption Date is $1.56 per $1,000 principal amount of Notes. Pursuant to the Indenture and the
Notes, the amount of contingent interest that will be payable with respect to the Notes on the
Redemption Date, if any, will be determined by reference to the average trading price of the Notes
for the five business days ending on May 13, 2008 (the Average Trading Price). If the Average
Trading Price equals or exceeds $1,200 per $1,000 principal amount of Notes, the amount of
contingent interest payable for the six-month interest period ending November 14, 2008 will equal
0.25% of the Average Trading Price per $1,000 principal amount of Notes. The amount of contingent
interest, if any, that will be payable with respect to the Notes on the Redemption Date will equal
a pro rated portion of such six-month amount, as accrued to the Redemption Date.
Holders of Notes at 5:00 p.m., New York City time, on May 1, 2008, the regular record date for
the May 15, 2008 interest payment on the Notes, will receive interest in the amount of $18.75 per
$1,000 principal amount of Notes payable on May 15, 2008. Notes surrendered for conversion by
holders during the period from 5:00 p.m., New York City time, on May 1, 2008 to 9:00 a.m., New York
City time, on May 15, 2008 must be accompanied by a payment of $18.75 per $1,000 principal amount
of Notes surrendered for conversion, which amount equals the regular interest payment that the
holder is to receive on such Notes. Holders that submit Notes for conversion after 9:00 a.m., New
York City time, on May 15, 2008 need not submit any interest payment in connection with the
conversion.
The Old Notes are convertible into shares of the Companys common stock, par value $0.01 per
share (the Common Stock), and the New Notes are convertible into cash or, at the Companys
option, a combination of cash and shares of Common Stock, subject to the terms, conditions and
adjustments specified in the Indenture and the Notes. With respect to the Old Notes, the Company
will satisfy its conversion obligation by delivering a number of shares of Common Stock per $1,000
principal amount of Old Notes being converted equal to the conversion rate in effect on the date on
which the holder satisfies the conversion requirements of the Indenture. With respect to the New
Notes, the Company will satisfy its conversion obligation by paying an amount in cash equal to the
lesser of the aggregate principal amount of New Notes being converted and the Companys conversion
obligation with respect to such New Notes, and by delivering shares of Common Stock to the extent
that such conversion obligation exceeds the aggregate principal amount of New Notes being
converted.
The right of holders to surrender their Notes for purchase by the Company (which we refer to
as the Option) will expire at 12:00 Midnight, New York City time, on Wednesday, May 14, 2008.
This Schedule TO is intended to satisfy the disclosure requirements of Rule 13e-4(c)(2) under the
Securities Exchange Act of 1934, as amended.
1
TABLE OF CONTENTS
ITEMS 1 through 9.
The Company is the issuer of the Notes, and the Company is offering to purchase for cash all
of the Notes if tendered by the holders under the terms and subject to the conditions set forth in
the Indenture, the Notes and the Option Materials. The Old Notes are convertible into shares of
Common Stock and the New Notes are convertible into cash or, at the Companys option, a combination
of cash and shares of Common Stock, subject to the terms, conditions and adjustments specified in
the Indenture and the Notes. The Company maintains its principal executive offices at 1111
Louisiana, Houston, Texas 77002. The Companys telephone number at that address is (713) 207-1111.
As permitted by General Instruction F to Schedule TO, all of the information set forth in the
Option Materials is incorporated by reference into this Schedule TO.
ITEM 10. Financial Statements.
The Company believes that its financial condition is not material to a holders decision
whether to exercise the Option because (1) the consideration being paid to holders surrendering
Notes consists solely of cash, (2) the Option is not subject to any financing conditions, (3) the
Option applies to all outstanding Notes and (4) the Company is a public reporting company that
files reports electronically on EDGAR. The financial condition and results of operations of the
Company and its subsidiaries are reported electronically on EDGAR on a consolidated basis.
ITEM 11. Additional Information.
(a) Agreements, Regulatory Requirements and Legal Proceedings. Not applicable.
(b) Other Material Information. Not applicable.
ITEM 12. Exhibits.
|
|
|
|
|
(a)(1)(A)
|
|
|
|
Company Notice to the Holders of CenterPoint Energy, Inc. 3.75% Convertible Senior
Notes due 2023 and 3.75% Convertible Senior Notes, Series B due 2023, dated April 17,
2008. |
|
|
|
|
|
(a)(1)(B)
|
|
|
|
Form of Purchase Notice. |
|
|
|
|
|
(a)(1)(C)
|
|
|
|
Form of Notice of Withdrawal. |
|
|
|
|
|
(a)(1)(D)
|
|
|
|
Substitute Form W-9. |
|
|
|
|
|
(a)(1)(E)
|
|
|
|
Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9. |
|
|
|
|
|
(a)(1)(F)
|
|
|
|
The description of the Old Notes and the Indenture set forth under the caption
Description of the Notes in the Companys prospectus dated December 4, 2003
(incorporated by reference to the Companys prospectus dated December 4, 2003, filed pursuant to
Rule 424(b)(3) under the Securities Act of 1933, as amended (File No. 333-110348)). |
|
|
|
|
|
(a)(1)(G)
|
|
|
|
The description of the New Notes and the Indenture set forth under the caption
Description of the New Notes in the Companys prospectus dated July 19, 2005
(incorporated by reference to the Companys prospectus dated July 19, 2005, filed pursuant to Rule
424(b)(3) under the Securities Act of 1933, as amended (File No. 333-123182)). |
|
|
|
|
|
(a)(5)(A)
|
|
|
|
Company Press Release dated April 16, 2008. |
|
|
|
|
|
(a)(5)(B)
|
|
|
|
Company Press Release dated April 17, 2008. |
|
|
|
|
|
(a)(5)(C)
|
|
|
|
Notice of Redemption. |
|
|
|
|
|
(b)
|
|
|
|
$1,200,000,000 Second Amended and Restated Credit Agreement dated as of June 29,
2007, among the Company, Citibank, N.A., as Syndication Agent, Barclays Bank PLC,
Bank of America, National Association and Credit Suisse, Cayman Islands Branch, as
Co-Documentation Agents, JPMorgan Chase Bank, N.A., as Administrative Agent, J.P.
Morgan Securities Inc. and Citigroup Global Markets Inc., as Joint Lead Arrangers and
Bookrunners, and the banks named therein (incorporated by reference to Exhibit 4.3 to
the Companys Form 10-Q for the quarter ended June 30, 2007). |
|
|
|
|
|
(d)(1)
|
|
|
|
Indenture, dated as of May 19, 2003, between the Company and the Trustee
(incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K
dated May 19, 2003). |
2
|
|
|
|
|
(d)(2)
|
|
|
|
Supplemental Indenture No. 1 dated as of May 19, 2003 between the Company and the
Trustee (incorporated by reference to Exhibit 4.2 to the Companys Current Report on
Form 8-K dated May 19, 2003). |
|
|
|
|
|
(d)(3)
|
|
|
|
Supplemental Indenture No. 6, dated as of August 23, 2005, between the Company and
the Trustee (incorporated by reference to Exhibit 4(g)(7) to the Companys Form 10-K
for the year ended December 31, 2005). |
|
|
|
|
|
(g)
|
|
|
|
Not applicable. |
|
|
|
|
|
(h)
|
|
|
|
Not applicable. |
ITEM 13. Information Required by Schedule 13E-3.
Not
applicable.
3
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information
set forth in this statement is true, complete and correct.
Dated: April 17, 2008
|
|
|
|
|
|
CENTERPOINT ENERGY, INC.
|
|
|
By: |
/s/
Walter L. Fitzgerald |
|
|
|
Walter L. Fitzgerald |
|
|
|
Senior Vice President and Chief Accounting Officer |
|
|
4
INDEX TO EXHIBITS
|
|
|
|
|
(a)(1)(A)
|
|
|
|
Company Notice to the Holders of CenterPoint Energy, Inc. 3.75% Convertible Senior
Notes due 2023 and 3.75% Convertible Senior Notes, Series B due 2023, dated April 17,
2008. |
|
|
|
|
|
(a)(1)(B)
|
|
|
|
Form of Purchase Notice. |
|
|
|
|
|
(a)(1)(C)
|
|
|
|
Form of Notice of Withdrawal. |
|
|
|
|
|
(a)(1)(D)
|
|
|
|
Substitute Form W-9. |
|
|
|
|
|
(a)(1)(E)
|
|
|
|
Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9. |
|
|
|
|
|
(a)(1)(F)
|
|
|
|
The description of the Old Notes and the Indenture set forth under the caption
Description of the Notes in the Companys prospectus dated December 4, 2003
(incorporated by reference to the Companys prospectus dated December 4, 2003, filed pursuant to
Rule 424(b)(3) under the Securities Act of 1933, as amended (File No. 333-110348)). |
|
|
|
|
|
(a)(1)(G)
|
|
|
|
The description of the New Notes and the Indenture set forth under the caption
Description of the New Notes in the Companys prospectus dated July 19, 2005
(incorporated by reference to the Companys prospectus dated July 19, 2005, filed pursuant to Rule
424(b)(3) under the Securities Act of 1933, as amended (File No. 333-123182)). |
|
|
|
|
|
(a)(5)(A)
|
|
|
|
Company Press Release dated April 16, 2008. |
|
|
|
|
|
(a)(5)(B)
|
|
|
|
Company Press Release dated April 17, 2008. |
|
|
|
|
|
(a)(5)(C)
|
|
|
|
Notice of Redemption. |
|
|
|
|
|
(b)
|
|
|
|
$1,200,000,000 Second Amended and Restated Credit Agreement dated as of June 29,
2007, among the Company, Citibank, N.A., as Syndication Agent, Barclays Bank PLC,
Bank of America, National Association and Credit Suisse, Cayman Islands Branch, as
Co-Documentation Agents, JPMorgan Chase Bank, N.A., as Administrative Agent, J.P.
Morgan Securities Inc. and Citigroup Global Markets Inc., as Joint Lead Arrangers and
Bookrunners, and the banks named therein (incorporated by reference to Exhibit 4.3 to
the Companys Form 10-Q for the quarter ended June 30, 2007). |
|
|
|
|
|
(d)(1)
|
|
|
|
Indenture, dated as of May 19, 2003, between the Company and the Trustee
(incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K
dated May 19, 2003). |
|
|
|
|
|
(d)(2)
|
|
|
|
Supplemental Indenture No. 1 dated as of May 19, 2003 between the Company and the
Trustee (incorporated by reference to Exhibit 4.2 to the Companys Current Report on
Form 8-K dated May 19, 2003). |
|
|
|
|
|
(d)(3)
|
|
|
|
Supplemental Indenture No. 6, dated as of August 23, 2005, between the Company and
the Trustee (incorporated by reference to Exhibit 4(g)(7) to the Companys Form 10-K
for the year ended December 31, 2005). |
|
|
|
|
|
(g)
|
|
|
|
Not applicable. |
|
|
|
|
|
(h)
|
|
|
|
Not applicable. |
5
exv99wa1wa
Exhibit (a)(1)(A)
COMPANY NOTICE
TO THE HOLDERS OF CENTERPOINT ENERGY, INC.
3.75% CONVERTIBLE SENIOR NOTES DUE 2023
CUSIP Numbers: 15189TAA5 and 15189TAC1*
3.75% CONVERTIBLE SENIOR NOTES, SERIES B DUE 2023
CUSIP Number: 15189TAM9*
Reference is hereby made to the Indenture dated as of May 19, 2003 (the Original Indenture)
by and between CenterPoint Energy, Inc. (the Company) and The Bank of New York Trust Company,
National Association (successor to JPMorgan Chase Bank), as Trustee (the Trustee), as amended and
supplemented by Supplemental Indenture No. 1 dated as of May 19, 2003 (Supplemental Indenture No.
1), under which the 3.75% Convertible Senior Notes due 2023 (the Old Notes) were issued, and
Supplemental Indenture No. 6 dated as of August 23, 2005 (Supplemental Indenture No. 6 and,
together with the Original Indenture and Supplemental Indenture No. 1, the Indenture), under
which the 3.75% Convertible Senior Notes, Series B due 2023 (the New Notes and, together with the
Old Notes, the Notes) were issued.
In accordance with the Indenture, at the option of each holder of the Notes, the Notes will be
purchased by the Company for $1,000 in cash per $1,000 principal amount of the Notes plus accrued
and unpaid interest to the Purchase Date, as defined below (the Purchase Price), subject to the
terms and conditions of the Indenture, the Notes, this Company Notice and related offer materials,
as amended and supplemented from time to time (the Offer). You may surrender all of your Notes, a
portion of your Notes or none of your Notes for purchase. Notes surrendered for purchase will be
accepted only in principal amounts equal to $1,000 or integral multiples thereof. The amount of
interest that will be payable with respect to the Notes on the Purchase Date is $18.75 per $1,000
principal amount of the Notes. Any Note purchased by the Company will be paid for in cash. Unless
the Company defaults in making payment of the Purchase Price, interest on purchased Notes will
cease to accrue on and after the Purchase Date. Holders may surrender their Notes at any time
during the period beginning on Thursday, April 17, 2008 and expiring at 12:00 Midnight, New York
City time, on Wednesday, May 14, 2008. This Company Notice is being sent pursuant to the provisions
of Section 701 of Supplemental Indenture No. 1 and Supplemental Indenture No. 6. Capitalized terms
used but not defined herein shall have the respective meanings ascribed to such terms in the
Indenture.
To accept the Offer to purchase the Notes and receive payment of the Purchase Price, you must
validly surrender the Notes and the enclosed Purchase Notice (the Purchase Notice) to the Paying
Agent (and not have withdrawn such surrendered Notes and the Purchase Notice), before 12:00
Midnight, New York City time, on Wednesday, May 14, 2008. Under the Indenture and the Notes, the
purchase date with respect to the offer is Thursday, May 15, 2008 (the Purchase Date). A Purchase
Notice may be withdrawn at any time before 12:00 Midnight, New York City time, on Wednesday, May
14, 2008. The Company will forward to the Paying Agent, before 10:00 a.m., New York City time, on
Thursday, May 15, 2008, the appropriate amount of cash required to pay the total Purchase Price for
the validly surrendered Notes, and the Paying Agent will promptly distribute the cash to the
holders.
HOLDERS THAT SURRENDER THROUGH THE DEPOSITORY TRUST COMPANY (DTC) NEED NOT SUBMIT A PHYSICAL
PURCHASE NOTICE TO THE PAYING AGENT IF SUCH HOLDERS COMPLY WITH THE TRANSMITTAL PROCEDURES OF DTC.
The Trustee serves as the Paying Agent and the Conversion Agent under the Indenture with
respect to the Notes. The address of the Trustee is as follows:
|
|
|
|
|
Mail: |
|
Express Delivery: |
|
Hand Delivery: |
The Bank of New York Trust
|
|
The Bank of New York Trust
|
|
The Bank of New York |
Company, N.A.
|
|
Company, N.A. |
|
101 Barclay Street |
Global Corporate Trust
|
|
Global Corporate Trust
|
|
4 New York Plaza 1st Floor |
P.O. Box 2320
|
|
2001 Bryan Street, 9th Floor
|
|
New York, NY 10286 |
Dallas, TX 75221-2320
|
|
Dallas, TX 75201
|
|
|
|
|
|
|
|
|
Dated: April 17, 2008
|
|
THE BANK OF NEW YORK TRUST
COMPANY, NATIONAL ASSOCIATION, TRUSTEE,
on behalf of CenterPoint Energy, Inc. |
NOTICE: Copies of this Company Notice may be obtained from the Paying Agent at its address set forth above.
* These CUSIP Numbers have been assigned to this issue by the CUSIP Service Bureau and are
included solely for the convenience of the holders of the Notes. Neither the Company nor the
Trustee shall be responsible for the selection or use of these CUSIP Numbers, nor is any
representation made as to their correctness on the Notes or as indicated in this notice.
2
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
|
|
SUMMARY TERM SHEET |
|
|
1 |
|
IMPORTANT INFORMATION CONCERNING THE OFFER |
|
|
5 |
|
1. Information Concerning the Company |
|
|
5 |
|
2. Information Concerning the Notes |
|
|
5 |
|
2.1. The Companys Obligation to Purchase the Notes |
|
|
5 |
|
2.2. Purchase Price |
|
|
5 |
|
2.3. Conversion Rights of Notes |
|
|
6 |
|
2.4. Market for the Notes and the Companys Common Stock |
|
|
7 |
|
2.5. Redemption |
|
|
8 |
|
2.6. Fundamental Change |
|
|
8 |
|
2.7. Ranking |
|
|
9 |
|
3. Procedures to be Followed by Holders Electing to Surrender Notes for Purchase |
|
|
9 |
|
3.1. Method of Delivery |
|
|
9 |
|
3.2. Purchase Notice |
|
|
9 |
|
3.3. Delivery of Notes |
|
|
9 |
|
4. Right of Withdrawal |
|
|
10 |
|
5. Payment for Surrendered Notes |
|
|
10 |
|
6. Notes Acquired |
|
|
11 |
|
7. Plans or Proposals of the Company |
|
|
11 |
|
8. Interests of Directors, Executive Officers and Affiliates of the Company in the Notes |
|
|
12 |
|
9. Purchases of Notes by the Company and its Affiliates |
|
|
12 |
|
10. Material United States Tax Consequences |
|
|
12 |
|
11. Additional Information |
|
|
14 |
|
12. No Solicitation |
|
|
15 |
|
13. Definitions |
|
|
15 |
|
14. Conflicts |
|
|
15 |
|
No person has been authorized to give any information or to make any representations other
than those contained in this Company Notice and the accompanying Purchase Notice and, if given or
made, such information or representations must not be relied upon as having been authorized. This
Company Notice and the accompanying Purchase Notice do not constitute an offer to buy or the
solicitation of an offer to sell Notes in any circumstances or jurisdiction in which such offer or
solicitation is unlawful. The delivery of this Company Notice shall not under any circumstances
create any implication that the information contained herein is current as of any time subsequent
to the date of such information. None of the Company or its board of directors or employees are
making any representation or recommendation to any holder as to whether to surrender such holders
Notes. You should consult your own financial and tax advisors and must make your own decision as to
whether to surrender your Notes for purchase and, if so, the amount of Notes to surrender.
i
SUMMARY TERM SHEET
The following are answers to some of the questions that you may have about the Offer. To
understand the Offer fully and for a more complete description of the terms of the Offer, we urge
you to read carefully the remainder of this Company Notice and the accompanying Purchase Notice
because the information in this summary is not complete and those documents contain additional
important information.
|
|
|
Who is offering to purchase my Notes? |
|
|
|
|
CenterPoint Energy, Inc., a Texas corporation, is offering to purchase all outstanding 3.75%
Convertible Senior Notes due 2023 and 3.75% Convertible Senior Notes, Series B due 2023
issued by it that are surrendered for purchase at the option of the holder thereof. As of
April 15, 2008, $390,851,000 aggregate principal amount of Notes are outstanding, comprised
of $652,000 aggregate principal amount of Old Notes and $390,199,000 aggregate principal
amount of New Notes. |
|
|
|
|
Why is the Company making the offer? |
|
|
|
|
The Company is required to make the offer under the terms of the Indenture and the Notes. |
|
|
|
|
How much is the Company offering to pay? |
|
|
|
|
Under the terms of the Indenture, the Company will pay, in cash, a Purchase Price of $1,000
per $1,000 principal amount of the Notes plus accrued and unpaid interest to the Purchase
Date with respect to any and all Notes validly surrendered for purchase and not withdrawn.
The amount of interest that will be payable with respect to the Notes on the Purchase Date
is $18.75 per $1,000 principal amount of the Notes. |
|
|
|
|
What is the form of payment? |
|
|
|
|
The Company is required to pay the Purchase Price in cash under the terms of the Indenture
and the Notes. |
|
|
|
|
Are the Notes convertible into stock? |
|
|
|
|
Yes. As a holder of Notes, you may surrender Notes for conversion at any time prior to
maturity, unless they have been previously purchased or redeemed, in the following
circumstances: |
|
o |
|
during any calendar quarter if the last reported sale price of the
Companys common stock for at least 20 trading days during the period of 30
consecutive trading days ending on the last trading day of the previous calendar
quarter, is greater than or equal to 120% of the conversion price per share of the
Companys common stock on such last trading day; |
|
|
o |
|
if the Notes have been called for redemption; |
|
|
o |
|
upon the occurrence of specified corporate transactions described in the Indenture; or |
|
|
o |
|
during any period in which the credit ratings assigned to the Notes by
both Moody s Investors Service, Inc. and Standard & Poors Ratings Services are
lower than Ba2 and BB, respectively, or the Notes are no longer rated by at least
one of these rating services or their successors. |
|
|
|
Based on the trading price of the Companys common stock during the first calendar quarter
of 2008, and as a result of the Companys call for redemption on April 16, 2008, each Note
is currently convertible at any time at the option of the holder. |
|
|
|
|
The current conversion rate of the Notes is 89.4381 shares of the Companys common stock,
par value $0.01 per share (the Common Stock), per $1,000 principal amount of the Notes.
With respect to the Old Notes, the Company will satisfy its conversion obligation by
delivering a number of shares of Common Stock per $1,000 |
1
|
|
|
principal amount of Old Notes being converted equal to the conversion rate in effect on the
date on which the holder satisfies the conversion requirements of the Indenture. With
respect to the New Notes, the Company will satisfy its conversion obligation by paying an
amount in cash equal to the lesser of the aggregate principal amount of New Notes converted
and the Companys conversion obligation with respect to such New Notes, and by delivering
shares of Common Stock to the extent that the conversion obligation exceeds the aggregate
principal amount of New Notes being converted (the Excess Value). The Companys
conversion obligation with respect to the New Notes will equal the product of: |
|
o |
|
(x) the aggregate principal amount of New Notes to be converted by a
holder divided by 1,000 multiplied by (y) the conversion rate in effect on the later
of (i) the date on which the Ten-Day Average Price (as defined below) can be
determined or (ii) the date on which the holder satisfies the conversion
requirements of the Indenture (including the delivery of a conversion notice to the
DTC); and |
|
|
o |
|
the average of the last reported sale prices of Common Stock for the
ten-trading-day period commencing on the second trading day following the date the
holder submits the Notes for conversion (the Ten-Day Average Price). |
|
|
|
With respect to the New Notes, the number of shares of Common Stock to be delivered, if any,
will be equal to the Excess Value divided by the Ten-Day Average Price. With respect to the
Notes, the Company will deliver cash in lieu of any fractional shares. |
|
|
|
|
How can I determine the market value of the Notes? |
|
|
|
|
There is no established reporting system or market for trading in the Notes. To the extent
that the Notes are traded, prices of the Notes may fluctuate widely depending on trading
volume, the balance between buy and sell orders, prevailing interest rates, the Companys
operating results and the market for similar securities. To the extent available, holders
are urged to obtain current market quotations for the Notes before making any decision with
respect to the Offer. |
|
|
|
|
What does the Companys board of directors think of the Offer? |
|
|
|
|
The board has not made any recommendation as to whether you should surrender your Notes for
purchase. You must make your own decision whether to surrender your Notes for purchase and,
if so, the principal amount of Notes to surrender. |
|
|
|
|
When does the Offer expire? |
|
|
|
|
The Offer expires at 12:00 Midnight, New York City time, on Wednesday, May 14, 2008. The
Company does not plan to extend the period you have to accept the Offer unless required to
do so by Federal securities laws. |
|
|
|
|
What are the conditions to the Companys purchase of the Notes? |
|
|
|
|
Provided that the Companys purchase of validly surrendered Notes is not unlawful and no
event of default under the Indenture has occurred and is continuing (other than an event of
default that is cured by the payment of the Purchase Price), the purchase will not be
subject to any conditions. |
|
|
|
|
How do I surrender my Notes? |
|
|
|
|
To surrender your Notes for purchase pursuant to the Offer, you must deliver the required
documents to The Bank of New York Trust Company, National Association, as Paying Agent, no
later than 12:00 Midnight, New York City time, on Wednesday, May 14, 2008. |
|
|
|
|
HOLDERS THAT SURRENDER THROUGH DTC NEED NOT SUBMIT A PHYSICAL PURCHASE NOTICE TO THE PAYING
AGENT IF SUCH HOLDERS COMPLY WITH THE TRANSMITTAL PROCEDURES OF DTC. |
2
|
o |
|
A holder whose Notes are held in certificated form must properly complete
and execute the Purchase Notice, and deliver the notice to the Paying Agent, with
any other required documents and the certificates representing the Notes to be
surrendered for purchase. |
|
|
o |
|
A holder whose Notes are held by a broker, dealer, commercial bank, trust
company or other nominee must contact that nominee if that holder desires to
surrender its Notes and instruct that nominee to surrender the Notes on the holders
behalf. |
|
|
o |
|
A holder who is a DTC participant should surrender its Notes
electronically through DTCs Automated Tenders over the Participant Terminal System
(PTS), subject to the terms and procedures of that system. |
|
|
|
If I surrender, when will I receive payment for my Notes? |
|
|
|
|
The Company will accept for payment all validly surrendered Notes immediately upon
expiration of the Offer. The Company will forward to the Paying Agent, before 10:00 a.m.,
New York City time, on Thursday, May 15, 2008, the appropriate amount of cash required to
pay the total Purchase Price for the validly surrendered Notes, and the Paying Agent will
promptly distribute the cash to the holders. |
|
|
|
|
Until what time can I withdraw previously surrendered Notes? |
|
|
|
|
You can withdraw previously surrendered Notes at any time before 12:00 Midnight, New York
City time, on Wednesday, May 14, 2008. |
|
|
|
|
How do I withdraw previously surrendered Notes? |
|
|
|
|
To withdraw previously surrendered Notes, you must deliver an executed written notice of
withdrawal substantially in the form attached prior to 12:00 Midnight, New York City time,
on Wednesday, May 14, 2008. The notice of withdrawal must state: |
|
o |
|
the principal amount of the withdrawn Notes; |
|
|
o |
|
if certificated Notes have been issued, the certificate numbers of the withdrawn Notes; and |
|
|
o |
|
the principal amount, if any, that remains subject to the original Purchase Notice. |
|
|
|
HOLDERS THAT WITHDRAW THROUGH DTC NEED NOT SUBMIT A PHYSICAL NOTICE OF WITHDRAWAL TO THE
PAYING AGENT IF SUCH HOLDERS COMPLY WITH THE WITHDRAWAL PROCEDURES OF DTC. |
|
|
|
|
Do I need to do anything if I do not wish to surrender my Notes for purchase? |
|
|
|
|
No. If you do not deliver a properly completed and duly executed Purchase Notice to the
Paying Agent or surrender your Notes electronically through DTCs Automated Tenders over the
PTS before the expiration of the Offer, the Company will not purchase your Notes pursuant to
the Offer and your Notes will remain outstanding subject to their existing terms. |
|
|
|
|
If I choose to surrender my Notes for purchase, do I have to surrender all of my Notes? |
|
|
|
|
No. You may surrender all of your Notes, a portion of your Notes or none of your Notes for
purchase. If you wish to surrender a portion of your Notes for purchase, however, you must
surrender your Notes in a principal amount of $1,000 or an integral multiple of $1,000. |
3
|
|
|
If I do not surrender my Notes for purchase, will I continue to be able to exercise my
conversion rights? |
|
|
|
|
If you do not surrender your Notes for purchase, your conversion rights will not be
affected. You will continue to have the right to convert your Notes in accordance with
their terms. |
|
|
|
|
If I am a U.S. resident for U.S. federal income tax purposes, will I have to pay taxes
if I surrender my Notes for purchase in the Offer? |
|
|
|
|
The receipt of cash in exchange for Notes pursuant to the Offer will be a taxable
transaction for U.S. federal income tax purposes. You should consult with your own tax
advisor regarding the actual tax consequences to you. |
|
|
|
|
Who is the Paying Agent? |
|
|
|
|
The Bank of New York Trust Company, National Association, the trustee for the Notes, is
serving as Paying Agent in connection with the Offer. Its address and telephone number are
set forth on the front cover page of this Company Notice. |
|
|
|
|
Who can I talk to if I have questions about the Offer? |
|
|
|
|
Questions and requests for assistance in connection with the surrender of Notes for purchase
pursuant to the Offer may be directed to Kathryn Maxwell at The Bank of New York Trust
Company, National Association at (713) 483-6817. |
4
IMPORTANT INFORMATION CONCERNING THE OFFER
1. |
|
Information Concerning the Company. |
CenterPoint Energy, Inc., a Texas corporation, is offering to purchase its 3.75% Convertible
Senior Notes due 2023 and its 3.75% Convertible Senior Notes, Series B due 2023. The Old Notes are
convertible into shares of Common Stock and the New Notes are convertible into cash or, at the
Companys option, a combination of cash and shares of Common Stock, subject to the terms,
conditions and adjustments specified in the Indenture and the Notes.
The Company is a public utility holding company. As of the date of this Company Notice, the
Companys indirect wholly owned subsidiaries include:
|
|
|
CenterPoint Energy Houston Electric, LLC, which engages in the electric transmission
and distribution business in a 5,000-square mile area of the Texas Gulf Coast that
includes Houston; and |
|
|
|
|
CenterPoint Energy Resources Corp. (CERC Corp.), which owns and operates natural
gas distribution systems in six states. Subsidiaries of CERC Corp. own interstate
natural gas pipelines and gas gathering systems and provide various ancillary services.
A wholly owned subsidiary of CERC Corp. offers variable and fixed-price physical
natural gas supplies primarily to commercial and industrial customers and electric and
gas utilities. |
The Companys principal executive offices are located at 1111 Louisiana, Houston, Texas 77002
(telephone number: (713) 207-1111). The Common Stock is listed on the New York Stock Exchange
under the symbol CNP.
2. |
|
Information Concerning the Notes. |
The Company issued the Notes under an Indenture dated as of May 19, 2003 by and between the
Company and The Bank of New York Trust Company, National Association (successor to JPMorgan Chase
Bank), as Trustee, as amended and supplemented by Supplemental Indenture No. 1 dated as of May 19,
2003, under which the Old Notes were issued, and Supplemental Indenture No. 6 dated as of August
23, 2005, under which the New Notes were issued. The description of the Old Notes and the
Indenture set forth under the caption Description of the Notes in the Companys prospectus dated
December 4, 2003 and the description of the New Notes and the Indenture set forth under the caption
Description of the New Notes in the Companys prospectus dated July 19, 2005 are incorporated
herein by reference. As of April 15, 2008, $390,851,000 aggregate principal amount of the Notes
are outstanding, comprised of $652,000 aggregate principal amount of Old Notes and $390,199,000
aggregate principal amount of New Notes.
|
2.1. |
|
The Companys Obligation to Purchase the Notes. |
This Offer will expire at 12:00 Midnight, New York City time, on Wednesday, May 14, 2008. The
Company does not plan to extend the period holders of Notes have to accept the Offer unless
required to do so by federal securities law. If holders do not validly surrender their Notes before
the expiration of the Offer, their Notes will remain outstanding subject to the existing terms of
the Indenture and the Notes.
Under the Indenture, the Company is obligated to purchase on Thursday, May 15, 2008 all Notes
validly surrendered for purchase and not withdrawn, at the holders option, prior to the expiration
of the Offer. The purchase by the Company of validly surrendered Notes is not subject to any
conditions other than (i) the absence of a continuing event of default under the Indenture (other
than an event of default that is cured by the payment of the Purchase Price) and (ii) the purchase
being lawful.
Under the Indenture and the Notes, the Purchase Price that will be paid for the Notes is
$1,000 per $1,000 principal amount of the Notes plus accrued and unpaid interest to the Purchase
Date. The amount of interest that will be payable with respect to the Notes on the Purchase Date is
$18.75 per $1,000 principal amount of the Notes. The Purchase Price will be paid in cash with
respect to any and all Notes validly surrendered for purchase and not withdrawn prior to the
expiration of
5
the Offer. Notes surrendered for purchase will be accepted only in principal amounts equal to
$1,000 or integral multiples thereof.
The Purchase Price is based solely on the requirements of the Indenture and the Notes and
bears no relationship to the market price of the Notes or of the Common Stock. Accordingly, the
Purchase Price may be significantly higher or lower than the current market price of the Notes.
Holders of Notes are urged to obtain the best available information as to the potential current
market prices of the Notes, to the extent available, and the Common Stock before making a decision
whether to surrender their Notes for purchase.
None of the Company or its board of directors or employees is making any recommendation to
holders as to whether to surrender or refrain from surrendering Notes for purchase pursuant to this
Company Notice. Each holder must make its own decision whether to surrender its Notes for purchase
and, if so, the principal amount of Notes to surrender based on that holders assessment of the
current market value of the Notes and the Common Stock and other relevant factors.
|
2.3. |
|
Conversion Rights of Notes. |
The current conversion rate of the Notes is 89.4381 shares of Common Stock per $1,000
principal amount of the Notes, subject to the terms, conditions and adjustments specified in the
Indenture and in the Notes, which is equivalent to a conversion price of $11.18 per share of Common
Stock. A holder may convert fewer than all of such holders Notes so long as the Notes converted
equal $1,000 principal amount or an integral multiple thereof. The Trustee, whose address appears
on the cover of this Purchase Notice, is currently acting as Conversion Agent for the Notes.
Holders that do not surrender their Notes for purchase pursuant to the Offer will maintain the
right to convert their Notes, subject to the terms, conditions and adjustments specified in the
Indenture and in the Notes.
Holders may surrender Notes for conversion prior to stated maturity only in the following
circumstances:
|
|
|
during any calendar quarter if the last reported sale price of the Common Stock for
at least 20 trading days during the period of 30 consecutive trading days ending on the
last trading day of the previous calendar quarter, is greater than or equal to 120% of
the conversion price per share of Common Stock on such last trading day; |
|
|
|
|
if the Notes have been called for redemption; |
|
|
|
|
upon the occurrence of specified corporate transactions described in the Indenture;
or |
|
|
|
|
during any period in which the credit ratings assigned to the Notes by both Moodys
Investors Service, Inc. and Standard & Poors Ratings Services are lower than Ba2 and
BB, respectively, or the Notes are no longer rated by at least one of these rating
services or their successors. |
Based on the trading price of the Common Stock during the first calendar quarter of 2008, and
as a result of the Companys call for redemption of all the outstanding Notes, as described in
Section 2.5 below, the Notes are convertible. With respect to the Old Notes, the Company will
satisfy its conversion obligation by delivering a number of shares of Common Stock per $1,000
principal amount of Old Notes being converted equal to the conversion rate in effect on the date on
which the holder satisfies the conversion requirements of the Indenture. With respect to the New
Notes, the Company will satisfy its conversion obligation by paying an amount in cash equal to the
lesser of the aggregate principal amount of New Notes being converted and the Companys conversion
obligation with respect to such New Notes, and by delivering shares of Common Stock to the extent
that such conversion obligation exceeds the aggregate principal amount of New Notes being
converted. The Companys conversion obligation with respect to the New Notes will equal the
product of:
|
|
|
(x) the aggregate principal amount of New Notes to be converted by a holder divided by
1,000 multiplied by (y) the conversion rate in effect on the later of (i) the date on which
the Ten-Day Average Price can be determined or (ii) the date on which the holder satisfies
the conversion requirements of the Indenture (including the delivery of a conversion notice
to the DTC); and |
|
|
|
|
the Ten-Day Average Price. |
6
With respect to the New Notes, the number of shares of Common Stock to be delivered, if any,
will be equal to the Excess Value divided by the Ten-Day
Average Price. With respect to the Notes, the Company will deliver cash in lieu of any
fractional shares.
With respect to the Old Notes, if a holder submits all or a portion of its Notes for
conversion and complies with the requirements of the Indenture, the Company will settle its
conversion obligation through the Trustee on or prior to the fifth Business Day following the date
on which the holder satisfies the conversion requirements of the Indenture. With respect to the
New Notes, if a holder submits all or a portion of its Notes for conversion and complies with the
requirements of the Indenture, the Company will settle its conversion obligation through the
Trustee on or prior to the fifth Business Day following the later of (i) the date on which the
Ten-Day Average Price can be determined or (ii) the date on which the holder satisfies the
conversion requirements of the Indenture.
A holder wishing to exercise its conversion right must:
|
|
|
complete the irrevocable conversion notice, which is available from the Conversion
Agent, and deliver such notice to the Conversion Agent; |
|
|
|
|
surrender the Notes to the Conversion Agent; |
|
|
|
|
furnish appropriate endorsements and transfer documents, if required by the
Conversion Agent or the Company; and |
|
|
|
|
pay any transfer or similar tax, if required. |
If a holder has already delivered a Purchase Notice with respect to a Note, the holder may not
surrender that Note for conversion until the holder has validly withdrawn the Purchase Notice
before the expiration of the Offer in accordance with the Indenture and as described in Section 4
below.
HOLDERS THAT SUBMIT NOTES FOR CONVERSION THROUGH DTC NEED NOT SUBMIT A CONVERSION NOTICE TO THE
CONVERSION AGENT IF SUCH HOLDERS COMPLY WITH DTCS CONVERSION PROCEDURES.
|
2.4. |
|
Market for the Notes and the Companys Common Stock. |
There is no established reporting system or trading market for trading in the Notes. To the
extent that the Notes are traded, prices of the Notes may fluctuate widely depending on trading
volume, the balance between buy and sell orders, prevailing interest rates, the Companys operating
results and the market for similar securities. The Notes are held through DTC, and Cede & Co., as
nominee of DTC, is the sole record holder of the Notes.
In certain circumstances described in Section 2.3 above, each Note is convertible, at the
option of the holder, at a conversion rate of 89.4381 shares of Common Stock per $1,000 principal
amount, which is equivalent to a conversion price of $11.18 per share of Common Stock. This
conversion rate is subject to adjustment in certain events. With respect to the Old Notes, the
Company will satisfy its conversion obligation by delivering a number of shares of Common Stock per
$1,000 principal amount of Old Notes being converted equal to the conversion rate in effect on the
date on which the holder satisfies the conversion requirements of the Indenture. With respect to
the New Notes, the Company will satisfy its conversion obligation by paying an amount in cash equal
to the lesser of the aggregate principal amount of New Notes being converted and the Companys
conversion obligation with respect to such New Notes, and by delivering shares of Common Stock to
the extent that such conversion obligation exceeds the aggregate principal amount of New Notes
being converted. The Common Stock is listed on the New York Stock Exchange (NYSE) under the
symbol CNP. The following table sets forth the high and low closing prices of the Common Stock
on the NYSE composite tape during the period indicated, as reported by Bloomberg, since January 1,
2006.
7
|
|
|
|
|
|
|
|
|
|
|
Price |
|
|
High |
|
Low |
2006 |
|
|
|
|
|
|
|
|
First Quarter |
|
$ |
13.28 |
|
|
$ |
11.92 |
|
Second Quarter |
|
|
12.50 |
|
|
|
11.73 |
|
Third Quarter |
|
|
14.55 |
|
|
|
12.55 |
|
Fourth Quarter |
|
|
16.80 |
|
|
|
14.22 |
|
2007 |
|
|
|
|
|
|
|
|
First Quarter |
|
|
18.37 |
|
|
|
16.51 |
|
Second Quarter |
|
|
20.02 |
|
|
|
16.90 |
|
Third Quarter |
|
|
17.88 |
|
|
|
15.15 |
|
Fourth Quarter |
|
|
18.51 |
|
|
|
15.97 |
|
2008 |
|
|
|
|
|
|
|
|
First Quarter |
|
|
16.98 |
|
|
|
13.84 |
|
Second Quarter (through April 15, 2008) |
|
|
15.26 |
|
|
|
14.66 |
|
On April 15, 2008, the last reported sales price of the Common Stock on the NYSE was $15.26
per share. As of March 31, 2008, there were 328,265,076 shares of Common Stock outstanding. We urge
you to obtain current market information for the Notes, to the extent available, and the Common
Stock before making any decision to surrender your Notes pursuant to the Offer.
On April 16, 2008, the Company announced that it had called for redemption all of the
outstanding Notes on May 30, 2008 (the Redemption Date). The redemption price will be $1,000 in
cash plus accrued and unpaid interest, including contingent interest, if any, to the Redemption
Date. The amount of regular interest that will be payable with respect to the Notes on the
Redemption Date is $1.56 per $1,000 principal amount of Notes. Pursuant to the Indenture and the
Notes, the amount of contingent interest that will be payable with respect to the Notes on the
Redemption Date, if any, will be determined by reference to the average trading price of the Notes
for the five business days ending on May 13, 2008.
As described in Section 2.3 above, each Note is currently convertible at any time at the
option of the holder. On the Redemption Date, the Notes will be redeemed unless (i) the holder of
such Notes surrenders its Notes for purchase in accordance with this Company Notice and such Notes
are not withdrawn or (ii) such Notes are converted prior to 5:00 p.m., New York City time, on the
Redemption Date.
Holders of Notes at 5:00 p.m., New York City time, on May 1, 2008, the regular record date for
the May 15, 2008 interest payment on the Notes, will receive interest in the amount of $18.75 per
$1,000 principal amount of Notes payable on May 15, 2008. Notes surrendered for conversion by
holders during the period from 5:00 p.m., New York City time, on May 1, 2008 to 9:00 a.m., New York
City time, on May 15, 2008 must be accompanied by a payment of $18.75 per $1,000 principal amount
of Notes surrendered for conversion, which amount equals the regular interest payment that the
holder is to receive on the Notes. Holders that submit Notes for conversion after 9:00 a.m., New
York City time, on May 15, 2008, need not submit any interest payment in connection with the
conversion.
Holders of the Notes will separately receive a Notice of Redemption that will provide more
detailed information about the call for redemption.
If a Fundamental Change (as defined in the Indenture) occurs at any time prior to May 15,
2008, holders may require the Company to purchase their Notes for cash at a purchase price equal to
the principal amount plus accrued and unpaid interest to the purchase date.
8
The Notes are unsecured and unsubordinated obligations of the Company. The Notes rank equal in
right of payment with all of the Companys existing and future unsecured and unsubordinated
indebtedness. The Notes are effectively subordinated to all existing and future indebtedness and
other liabilities of the Companys subsidiaries.
3. |
|
Procedures to be Followed by Holders Electing to Surrender Notes for Purchase. |
Holders will not be entitled to receive the Purchase Price for their Notes unless they validly
surrender and do not withdraw their Notes before the expiration of the Offer. Only registered
holders are authorized to surrender their Notes for purchase. Holders may surrender some or all of
their Notes; however, any Notes surrendered must equal $1,000 principal amount or an integral
multiple thereof. If holders do not validly surrender their Notes before the expiration of the
Offer, their Notes will remain outstanding subject to the terms of the Notes.
The method of delivery of Notes, the related Purchase Notice and all other required documents,
including delivery through DTC and acceptance through PTS, is at the election and risk of the
person surrendering such Notes and delivering such Purchase Notice and, except as expressly
otherwise provided in the Purchase Notice, delivery will be deemed made only when actually received
by the Paying Agent. The date of any postmark or other indication of when a Note or the Purchase
Notice was sent will not be taken into account in determining whether such materials were timely
received. If delivery is by mail, it is suggested that holders use properly insured, registered
mail with return receipt requested, and that holders mail the required documents sufficiently in
advance of Wednesday, May 14, 2008 to permit delivery to the Paying Agent before the expiration of
the Offer.
The Indenture requires that the Purchase Notice contain:
|
|
|
if certificated Notes have been issued, the certificate numbers of the Notes; |
|
|
|
|
the portion of the principal amount of Notes to be purchased, in integral multiples of $1,000; and |
|
|
|
|
that the Notes are to be purchased by the Company pursuant to the applicable
provisions of the Notes and the Indenture. |
A form of Purchase Notice is enclosed.
Notes in Certificated Form. To receive the Purchase Price, holders of Notes in certificated
form must deliver to the Paying Agent the Notes to be surrendered for purchase and the accompanying
Purchase Notice, or a copy thereof, before the expiration of the Offer.
Notes Held Through a Custodian. A holder whose Notes are held by a broker, dealer, commercial
bank, trust company or other nominee must contact such nominee if such holder desires to surrender
its Notes and instruct such nominee to surrender the Notes for purchase on the holders behalf.
Notes in Global Form. A holder who is a DTC participant may elect to surrender to the Company
its beneficial interest in its Notes by:
|
|
|
delivering to the Paying Agents account at DTC through DTCs book-entry system its
beneficial interest in the Notes before the expiration of the Offer; and |
9
|
|
|
electronically transmitting its acceptance through DTCs PTS, subject to the terms
and procedures of that system. |
In surrendering through PTS, the electronic instructions sent to DTC by the holder, and
transmitted by DTC to the Paying Agent, will acknowledge, on behalf of DTC and the holder, receipt
by the holder of and agreement to be bound by the Purchase Notice.
Notes and the Purchase Notice must be delivered to the Paying Agent to collect payment.
Delivery of documents to DTC or the Company does not constitute delivery to the Paying Agent.
HOLDERS THAT SURRENDER THROUGH DTC NEED NOT SUBMIT A PHYSICAL PURCHASE NOTICE TO THE PAYING AGENT
IF SUCH HOLDERS COMPLY WITH DTCS TRANSMITTAL PROCEDURES.
Notes surrendered for purchase may be withdrawn at any time before the expiration of the
Offer. In order to withdraw previously surrendered Notes, holders must either comply with DTCs
withdrawal procedures or deliver to the Paying Agent an executed written notice of withdrawal
substantially in the form attached prior to 12:00 Midnight, New York City time, on Wednesday, May
14, 2008. The notice of withdrawal must state:
|
|
|
the principal amount of the withdrawn Notes; |
|
|
|
|
if certificated Notes have been issued, the certificate numbers of the withdrawn
Notes; and |
|
|
|
|
the principal amount, if any, which remains subject to the original Purchase Notice. |
The signature on the notice of withdrawal must be guaranteed by an eligible guarantor
institution (as defined in Rule 17Ad-15(a)(2) under the Securities Exchange Act of 1934, as
amended) (an Eligible Guarantor Institution), unless such Notes have been surrendered for
purchase for the account of an Eligible Guarantor Institution. Any properly withdrawn Notes will
be deemed not validly surrendered for purposes of the Offer. Notes withdrawn from the Offer may be
resurrendered by following the surrender procedures described above.
HOLDERS THAT WITHDRAW THROUGH DTC NEED NOT SUBMIT A PHYSICAL NOTICE OF WITHDRAWAL TO THE PAYING
AGENT IF SUCH HOLDERS COMPLY WITH DTCS WITHDRAWAL PROCEDURES.
5. |
|
Payment for Surrendered Notes. |
The Company will forward to the Paying Agent, before 10:00 a.m., New York City time, on
Thursday, May 15, 2008, the appropriate amount of cash required to pay the total Purchase Price for
the Notes validly surrendered for purchase and not withdrawn, and the Paying Agent will promptly
distribute the cash to the holders. Unless the Company defaults in making payment of the Purchase
Price, interest on purchased Notes will cease to accrue on and after the Purchase Date. Each
holder of a beneficial interest in the Notes that has properly delivered such beneficial interest
for purchase by the Company through DTC and not validly withdrawn such delivery before the
expiration of the Offer will receive the Purchase Price promptly after such distribution.
The total amount of funds required by the Company to purchase all of the Notes outstanding as
of April 15, 2008 is approximately $398.2 million (assuming all of the Notes are validly
surrendered for purchase and accepted for payment). In the event any Notes are surrendered and
accepted for payment, the Company intends to borrow under its $1.2 billion senior unsecured
revolving credit facility.
Citibank, N.A. acts as syndication agent, Barclays Bank PLC, Bank of America, National
Association and Credit Suisse, Cayman Islands Branch act as co-documentation agents and JPMorgan
Chase Bank, N.A. acts as administrative agent with respect to the Companys revolving credit
facility. The facility, which matures on June 29, 2012, has a first drawn cost of London Interbank
Offered Rate (LIBOR) plus 55 basis points based on the Companys current credit ratings. As of
April
10
15, 2008, the annual interest rate on borrowings under the facility is 3.3%. The facility
contains covenants, including a debt (excluding transition bonds) to earnings before interest,
taxes, depreciation and amortization covenant. Under the credit facility, an additional
utilization fee of 5 basis points applies to borrowings any time more than 50% of the facility is
utilized, and the spread to LIBOR fluctuates based on the Companys credit rating. Borrowings under
the facility are subject to customary terms and conditions. However, there is no requirement that
the Company make representations prior to borrowings as to the absence of material adverse changes
or litigation that could be expected to have a material adverse effect. Borrowings under the credit
facility are subject to acceleration upon the occurrence of events of default that the Company
considers customary.
Any Notes that are purchased by the Company pursuant to the Offer will be cancelled by the
Trustee, pursuant to the terms of the Indenture.
7. |
|
Plans or Proposals of the Company. |
Except as described in this document, there presently are no plans or proposals that relate to
or would result in:
(1) any extraordinary transaction, such as a merger, reorganization or liquidation, involving
the Company or any of its subsidiaries;
(2) any repurchase, sale or transfer of a material amount of assets of the Company or any of
its subsidiaries;
(3) any material change in the present dividend rate or policy, or indebtedness or
capitalization of the Company;
(4) any change in the present board of directors or management of the Company, including, but
not limited to, any plans or proposals to change the number or the term of directors (see
discussion in (10) below regarding the classified Board structure) or to fill any existing
vacancies on the board or to change any material term of the employment contract of any executive
officer; however, routinely throughout the year, the Governance Committee of the Companys board of
directors considers nominating individuals for election to the Companys board of directors,
whether at the Companys annual meeting of shareholders, to fill vacancies that may occur or to
serve as additions to the Companys board of directors;
(5) any other material change in the Companys corporate structure or business;
(6) any class of equity security of the Company to be delisted from a national securities
exchange or cease to be authorized to be quoted in an automated quotation system operated by a
national securities association;
(7) any class of equity security of the Company becoming eligible for termination of
registration under Section 12(g)(4) of the Exchange Act;
(8) the suspension of the Companys obligation to file reports under Section 15(d) of the
Exchange Act;
(9) the acquisition by any person of additional securities of the Company, or the disposition
of securities of the Company; or
(10) any changes in the Companys articles of incorporation, bylaws or other governing
instruments or other actions that could impede the acquisition of control of the Company; however,
the Companys Board of Directors has approved and submitted to its shareholders an amendment to the
Companys Amended and Restated Articles of Incorporation that provides for the phase out of the
classified structure of its Board of Directors so that, once the amendment is fully effective, all
directors will be elected each year. If the amendment is adopted by the Companys shareholders,
the Board of Directors will make conforming amendments to the Companys bylaws.
11
8. |
|
Interests of Directors, Executive Officers and Affiliates of the Company in the Notes. |
|
|
|
None of the Company or its subsidiaries or, to the knowledge of the Company after
reasonable inquiry, its executive officers or directors has any beneficial interest in
the Notes; |
|
|
|
|
the Company will not purchase any Notes from such persons; and |
|
|
|
|
during the 60 days preceding the Purchase Date, neither the Company nor any of its
executive officers, directors or affiliates have engaged in any transactions in the
Notes. |
A list of the directors and executive officers of the Company is attached to this Company
Notice as Annex A.
Neither the Company or its subsidiaries nor, to its knowledge, any of its affiliates,
directors or executive officers is a party to any contract, arrangement, understanding or agreement
with any other person relating, directly or indirectly, to the Offer or with respect to any of the
securities of the Company including, but not limited to, any contract, arrangement, understanding
or agreement concerning the transfer or the voting of the securities, joint ventures, loan or
option arrangement, puts or calls, guarantees of loans, guarantees against loss or the giving or
withholding of proxies, consents or authorizations.
Certain directors and executive officers of the Company and its affiliates are parties to
ordinary course stock option plans and arrangements involving the Common Stock, as disclosed by the
Company before the date of this Company Notice.
9. |
|
Purchases of Notes by the Company and its Affiliates. |
On April 16, 2008, the Company announced that it had called for redemption all of the
outstanding Notes on May 30, 2008. The redemption price will be $1,000 in cash plus accrued and
unpaid interest, including contingent interest, if any, to the Redemption Date. See Section 2.5
above for more information.
10. |
|
Material United States Tax Consequences. |
The following discussion is a summary of the material U.S. federal income tax considerations
relating to the surrender of the Notes for purchase pursuant to the Offer. This discussion does not
purport to be a complete analysis of all potential tax effects of the Offer. This summary is based
upon laws, regulations, rulings and decisions currently in effect, all of which are subject to
change or differing interpretations at any time, possibly with retroactive effect. Moreover, this
summary applies only to holders who hold Notes as capital assets within the meaning of Section
1221 of the Internal Revenue Code of 1986, as amended (the Code), and does not purport to deal
with persons in special tax situations, such as financial institutions, insurance companies,
regulated investment companies, tax exempt investors, dealers in securities and currencies, U.S.
expatriates or former long-term residents, persons holding Notes as a position in a straddle,
hedge, conversion or other integrated transaction for tax purposes, persons who own, directly
or indirectly, 10% or more of our voting power, U.S. Holders (as defined below) whose functional
currency is not the U.S. dollar, and partnerships. The tax treatment of a partnership that holds
Notes will generally depend on the status of the partners and the activities of the partnership.
Holders that are partnerships should consult their own tax advisors about the U.S. federal income
tax consequences of surrendering Notes pursuant to the Offer. Further, this discussion does not
address the consequences under U.S. federal estate or gift tax laws or the laws of any U.S. state
or locality or any foreign jurisdiction.
For purposes of this discussion, a U.S. Holder means a beneficial owner of Notes that is,
for U.S. federal income tax purposes: a citizen or resident of the United States; a corporation (or
other entity that has elected to be treated as a corporation) created or organized in or under the
laws of the United States or any political subdivision thereof; an estate the income of which is
subject to U.S. federal income tax regardless of its source; a trust if a court within the United
States is able to exercise primary jurisdiction over its administration and one or more U.S.
persons have authority to control all of its substantial decisions; and certain electing trusts
that were in existence and treated as U.S. trusts on August 20, 1996. As used herein, the term
non-U.S. Holder means a beneficial owner of Notes, other than a partnership, that is not a U.S.
Holder as defined above.
Classification of the Notes. Although the proper treatment is not entirely free from doubt,
the Company has treated the Notes as indebtedness for United States federal income tax purposes and
has taken the position that the Notes are subject
12
to the special regulations governing contingent payment debt instruments (the CPDI
regulations). Pursuant to the terms of the Indenture, the Company and each holder of the Notes
have agreed, for United States federal income tax purposes, to treat the Notes as debt instruments
that are subject to the CPDI regulations, and the remainder of this discussion assumes that the
Notes have been so treated. In addition, under the Indenture, each holder was deemed to have
accrued interest with respect to the Notes as original issue discount for United States federal
income tax purposes according to the noncontingent bond method, set forth in section 1.1275-4(b)
of the CPDI regulations, using a comparable yield compounded semiannually and a projected payment
schedule determined by us.
Sale of Notes Pursuant to the Offer. A U.S. Holder who receives cash in exchange for Notes
pursuant to the Offer will recognize taxable gain or loss equal to the difference between (a) the
amount of cash received and (b) the U.S. Holders adjusted tax basis in the Notes surrendered. A
U.S. holders adjusted tax basis in a Note will generally be equal to the U.S. holders original
purchase price for the Note, increased by any interest income previously accrued by the U.S. holder
(determined without regard to any adjustments to interest accruals required under section
1.1275-4(b) of the CPDI regulations, other than adjustments to reflect a U.S. Holders purchase of
the Notes at a discount or premium, if any, to the adjusted issue price), and decreased by the
amount of any projected payments projected to have been made through such date in respect of the
Notes to the U.S. holder (without regard to the actual amount paid). Gain recognized upon an
exchange of Notes for cash pursuant to the Offer will generally be treated as ordinary interest
income; any loss will be ordinary loss to the extent of interest previously included in income, and
thereafter, capital loss (which will be long-term if the Note is held for more than one year). The
deductibility of capital losses is subject to limitations. Payments for accrued interest not
previously included in income will be treated as ordinary interest income.
A non-U.S. Holder who receives cash in exchange for Notes pursuant to the Offer generally will
not be subject to U.S. federal income tax on the cash received, provided that:
|
|
|
the gain is not effectively connected with the conduct by such non-U.S. Holder of a
trade or business in the United States or, in the case of certain treaty residents, is
not attributable to a permanent establishment or a fixed base in the United States, |
|
|
|
|
the non-U.S. Holder does not actually or constructively own 10% or more of the total
combined voting power of all classes of the Common Stock, |
|
|
|
|
the non-U.S. Holder is not a controlled foreign corporation that is related to the
Company within the meaning of the Code, and |
|
|
|
|
the U.S. payor does not have actual knowledge or reason to know that the holder is a
United States person (as defined in section 7701(a)(30) of the Code) and either (1)
the beneficial owner of the Notes certifies to the applicable payor or its agent, under
penalties of perjury, that it is not a United States person and provides its name and
address on Internal Revenue Service Form W-8BEN (or a suitable substitute form), or (2)
a securities clearing organization, bank or other financial institution, that holds
customers securities in the ordinary course of its trade or business (a financial
institution) and holds the Notes, certifies under penalties of perjury that a Form
W-8BEN (or a suitable substitute form) has been received from the beneficial owner by
it or by a financial institution between it and the beneficial owner and furnishes the
payor with a copy of the form or the U.S. payor otherwise possesses documentation upon
which it may rely to treat the payment as made to a person other than a United States
person in accordance with U.S. Treasury regulations. |
Backup Withholding. Under the backup withholding provisions of the Code, a U.S. Holder who
surrenders Notes for purchase will generally be subject to backup withholding at the rate of 28% of
any gross payment if such holder fails to provide a certified Taxpayer Identification Number
(Employer Identification Number or Social Security Number). A U.S. Holder who provides a certified
Taxpayer Identification Number may nevertheless be subject to backup withholding on the portion of
the payment representing accrued interest if the Company has been notified by the Internal Revenue
Service that such U.S. Holder is currently subject to backup withholding as a result of a failure
to report all interest or dividends or if such U.S. Holder fails to certify to the Company that
such U.S. Holder has not been so notified. U.S. Holders electing to surrender Notes should
complete a Substitute Form W-9 and attach it to the Notes being surrendered. If you are a U.S.
Holder exempt
13
from backup withholding under the Code, please provide your Taxpayer Identification Number and
so indicate on the Substitute Form W-9.
If a non-U.S. Holder holds Notes through the non-U.S. office of a non-U.S. related broker or
financial institution, backup withholding and information reporting generally will not be required.
Information reporting, and possibly backup withholding, may apply if the Notes are held by a
non-U.S. Holder through a U.S. broker or financial institution or the U.S. office of a non-U.S.
broker or financial institution and the non-U.S. Holder fails to provide appropriate information
(on Internal Revenue Service Form W-8BEN or other applicable form). Non-U.S. Holders should consult
their tax advisors with respect to the application of U.S. information reporting and backup
withholding rules to the disposition of Notes pursuant to the Offer.
U.S. federal income tax considerations which are in addition to or different from those just
described may apply to holders in special circumstances. The Company recommends that holders
consult with their tax and financial advisors with respect to the tax consequences of surrendering
Notes for purchase, including the applicability and effect of state, local and non-U.S. tax laws,
before surrendering their Notes for purchase.
11. |
|
Additional Information. |
The Company is subject to the reporting and other informational requirements of the Exchange
Act and, in accordance therewith, files annual, quarterly and special reports, proxy statements and
other information with the SEC. You can read and copy any materials that the Company files with the
SEC at the SECs public reference room at 100 F Street, NE, Washington, D.C. 20549. You can obtain
information about the operation of the SECs public reference room by calling the SEC at
1-800-SEC-0330. The SEC also maintains a website (http://www.sec.gov) that contains reports, proxy
and information statements and other information regarding registrants that file electronically
with the SEC. You can obtain information about the Company at the offices of the New York Stock
Exchange, 20 Broad Street, New York, New York 10005.
The Company has filed with the SEC a Tender Offer Statement on Schedule TO under Section
13(e)(4) of the Exchange Act and Rule 13e-4 of the SEC, furnishing certain information with respect
to the Offer. The Tender Offer Statement on Schedule TO, together with any exhibits and any
amendments thereto, may be examined and copies may be obtained at the same places and in the same
manner as described above.
The documents listed below (as such documents may be amended from time to time) contain
important information about the Company and its financial condition:
|
|
|
The Companys Annual Report on Form 10-K for the year ended December 31, 2007; |
|
|
|
|
All other reports filed by the Company with the SEC under Sections 13, 14 and 15(d)
of the Exchange Act since the end of the year covered by the Form 10-K mentioned above; |
|
|
|
|
The description of the Old Notes and the Indenture set forth under the caption
Description of the Notes in the Companys prospectus dated December 4, 2003; |
|
|
|
|
The description of the New Notes and the Indenture set forth under the caption
Description of the New Notes in the Companys prospectus dated July 19, 2005; and |
|
|
|
|
The description of the Common Stock contained in the Companys Current Report on
Form 8-K filed September 6, 2002, as thereafter amended from time to time for the
purpose of updating, changing or modifying such description. |
In the event of conflicting information in these documents, the information in the latest
filed documents should be considered correct.
14
There are no persons directly or indirectly employed, retained or to be compensated to make
solicitations or recommendations in connection with the Offer. The Bank of New York Trust Company,
National Association, however, is the trustee under the Indenture and will be communicating with
and providing notices to holders of the Notes as required by the Indenture.
All capitalized terms used but not specifically defined herein shall have the meanings given
to those terms in the Indenture and the Notes.
In the event of any conflict between this Company Notice and the accompanying Purchase Notice,
on the one hand, and the terms of the Indenture and the Notes or any applicable laws, on the other
hand, the terms of the Indenture or the Notes or applicable laws, as the case may be, will control.
None of the Company or its board of directors or employees are making any recommendation to
any holder as to whether to surrender or refrain from surrendering Notes for purchase pursuant to
this Company Notice. Each holder must make his or her own decision whether to surrender his or her
Notes for purchase and, if so, the principal amount of Notes to surrender based on their own
assessment of current market value and other relevant factors.
|
|
|
|
|
|
CENTERPOINT ENERGY, INC.
April 17, 2008
|
|
|
|
|
|
|
|
|
|
|
15
ANNEX A
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
The following table presents the name and title of each of the Companys directors and
executive officers as of April 17, 2008. The address of each such person is c/o CenterPoint
Energy, Inc., 1111 Louisiana, Houston, Texas 77002 (telephone number: (713) 207-1111).
|
|
|
Name |
|
Title |
Milton Carroll
|
|
Chairman of the Board |
Donald R. Campbell
|
|
Director |
Derrill Cody
|
|
Director |
O. Holcombe Crosswell
|
|
Director |
Janiece M. Longoria
|
|
Director |
Thomas F. Madison
|
|
Director |
Robert T. OConnell
|
|
Director |
Michael E. Shannon
|
|
Director |
Peter S. Wareing
|
|
Director |
Sherman M. Wolff
|
|
Director |
David M. McClanahan
|
|
President and Chief Executive Officer; Director |
Scott E. Rozzell
|
|
Executive Vice President, General Counsel and
Corporate Secretary |
Gary L. Whitlock
|
|
Executive Vice President and Chief Financial Officer |
Walter L. Fitzgerald
|
|
Senior Vice President and Chief Accounting Officer |
Thomas R. Standish
|
|
Senior Vice President and Group President, Regulated
Operations |
16
exv99wa1wb
Exhibit (a)(1)(B)
PURCHASE NOTICE
To Surrender
3.75% CONVERTIBLE SENIOR NOTES DUE 2023
CUSIP Numbers: 15189TAA5 and 15189TAC1*
and
3.75% CONVERTIBLE SENIOR NOTES, SERIES B DUE 2023
CUSIP Number: 15189TAM9*
issued by
CENTERPOINT ENERGY, INC.
Pursuant to the Company Notice given by
CenterPoint Energy, Inc.
Dated April 17, 2008
SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE COMPANY NOTICE, THE RIGHT OF HOLDERS TO
SURRENDER NOTES FOR PURCHASE IN THE OFFER EXPIRES AT 12:00 MIDNIGHT, NEW YORK CITY TIME, ON
WEDNESDAY, MAY 14, 2008. NOTES SURRENDERED FOR PURCHASE MAY BE WITHDRAWN BEFORE 12:00
MIDNIGHT, NEW YORK CITY TIME, ON WEDNESDAY, MAY 14, 2008.
HOLDERS THAT SURRENDER THROUGH THE DEPOSITORY TRUST COMPANY (DTC) NEED NOT SUBMIT A PHYSICAL
PURCHASE NOTICE TO THE PAYING AGENT IF SUCH HOLDERS COMPLY WITH THE TRANSMITTAL PROCEDURES OF DTC.
The Paying Agent is:
The Bank of New York Trust Company, National Association
|
|
|
|
|
Mail: |
|
Express Delivery: |
|
Hand Delivery: |
The Bank of New York Trust
|
|
The Bank of New York Trust
|
|
The Bank of New York |
Company, N.A.
|
|
Company, N.A.
|
|
101 Barclay Street |
Global Corporate Trust
|
|
Global Corporate Trust
|
|
4 New York Plaza 1st Floor |
P.O. Box 2320
|
|
2001 Bryan Street, 9th Floor
|
|
New York, NY 10286 |
Dallas, TX 75221-2320
|
|
Dallas, TX 75201 |
|
|
For Information:
Kathryn Maxwell
(713) 483-6817
DELIVERY OF THIS PURCHASE NOTICE TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE
WILL NOT CONSTITUTE VALID DELIVERY.
* |
|
These CUSIP Numbers have been assigned to this issue by the CUSIP Service Bureau and are
included solely for the convenience of the holders of the Notes. Neither the Company nor the
Trustee shall be responsible for the selection or use of these CUSIP Numbers, nor is any
representation made as to their correctness on the Notes or as indicated in this notice. |
THE INSTRUCTIONS CONTAINED HEREIN AND IN THE COMPANY NOTICE (AS DEFINED BELOW) SHOULD BE READ
CAREFULLY BEFORE THIS PURCHASE NOTICE IS COMPLETED.
By execution hereof, the undersigned acknowledges receipt of the Company Notice dated April
17, 2008 (the Company Notice) of CenterPoint Energy, Inc., a Texas corporation (the Company),
this Purchase Notice and instructions hereto (the Purchase Notice) and related offer materials,
all of which relate to the offer to purchase by the Company, at the option of the holder thereof,
all outstanding 3.75% Convertible Senior Notes due 2023 (the Old Notes) and 3.75% Convertible
Senior Notes, Series B due 2023 (the New Notes and, together with the Old Notes, the Notes).
The Company is offering to purchase the Old Notes pursuant to the terms and conditions of the
Indenture dated as of May 19, 2003 (the Original Indenture) by and between the Company and The
Bank of New York Trust Company, National Association (successor to JPMorgan Chase Bank), as Trustee
(the Trustee), Supplemental Indenture No. 1 to the Original Indenture, dated as of May 19, 2003
(Supplemental Indenture No. 1), paragraph 8 of the Old Notes, the Company Notice and related
offer materials. The Company is offering to purchase the New Notes pursuant to the terms and
conditions of the Original Indenture, Supplemental Indenture No. 6 to the Original Indenture, dated
as of August 23, 2005 (Supplemental Indenture No. 6 and, together with the Original Indenture and
Supplemental Indenture No. 1, the Indenture), paragraph 8 of the New Notes, the Company Notice
and related offer materials.
HOLDERS WHO WISH TO BE ELIGIBLE TO RECEIVE PAYMENT FOR THE NOTES SURRENDERED FOR PURCHASE IN
THE OFFER PURSUANT TO THE COMPANY NOTICE MUST VALIDLY SURRENDER (AND NOT WITHDRAW) THEIR NOTES TO
THE PAYING AGENT BEFORE 12:00 PM MIDNIGHT, NEW YORK CITY TIME, ON WEDNESDAY, MAY 14, 2008.
This Purchase Notice is to be used by holders of the Notes if certificates representing Notes
are to be physically delivered to the Paying Agent herewith by holders of Notes. This Purchase
Notice is also being supplied for informational purposes only to persons who hold Notes in
book-entry form through the facilities of DTC. Surrender of Notes held through DTC must be made
pursuant to the procedures described under Procedures to be Followed by Holders Electing to
Surrender Notes for Purchase Delivery of Notes Notes in Global Form in the Company Notice.
In order to properly complete this Purchase Notice, a holder of Notes must (1) complete and
sign the Purchase Notice; (2) if appropriate, check and complete the boxes relating to Special
Issuance or Payment Instructions and Special Delivery Instructions; and (3) complete Substitute
Form W-9 or other applicable form. Each holder of Notes should carefully read the detailed
Instructions contained herein before completing this Purchase Notice.
The undersigned has completed, executed and delivered this Purchase Notice to indicate the
action the undersigned desires to take with respect to the surrendering of Notes for purchase
pursuant to the Company Notice.
All capitalized terms used herein but not specifically defined herein shall have the
respective meanings ascribed to them in the Company Notice, the Indenture and the Notes.
Your bank or broker can assist you in completing this form. The instructions included with
this Purchase Notice must be followed. Questions and requests for assistance or for additional
copies of the Company Notice or this Purchase Notice may be directed to the Paying Agent. See
Instruction 9 below.
The Company is not aware of any jurisdiction where the delivery of the Company Notice would
not be in compliance with applicable laws. If the Company becomes aware of any jurisdiction where
the delivery of the Company Notice would not be in compliance with such laws, the Company will make
a good faith effort to comply with any such laws or seek to have such laws declared inapplicable to
the delivery of the Company Notice. If after such good faith effort, the Company cannot comply with
any such applicable laws, the Company Notice will not be delivered to, nor will surrenders be
accepted from or on behalf of, the holders of Notes residing in such jurisdiction.
HOLDERS WHO WISH TO SURRENDER THEIR NOTES MUST
COMPLETE THIS PURCHASE NOTICE IN ITS ENTIRETY.
NOTE: SIGNATURES MUST BE PROVIDED BELOW
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY
Ladies and Gentlemen:
By executing and delivering a Purchase Notice, each signatory hereof (the undersigned)
represents that the undersigned has received the Company Notice, which provides the notice to the
holders required pursuant to the Indenture and the Notes.
This Purchase Notice relates to the offer to purchase by the Company, at the option of the
holders, for $1,000 in cash per Note plus accrued and unpaid interest to the Purchase Date
(the Purchase Price), the Notes, subject to the terms and conditions of the Indenture, the Notes,
the Company Notice and related offer materials, as amended and supplemented from time to time (the
Offer). The amount of interest that will be payable with respect to the Notes on the Purchase
Date is $18.75 per $1,000 principal amount of the Notes.
Upon the terms and subject to the conditions set forth herein and in the Indenture and the
Notes, and effective upon the acceptance for payment thereof, the undersigned hereby:
|
|
|
irrevocably sells, assigns and transfers to the Company all right, title and
interest in and to all the Notes surrendered hereby, |
|
|
|
|
waives any and all rights with respect to the Notes (including without limitation
any existing or past defaults and their consequences in respect of the Indenture), |
|
|
|
|
releases and discharges the Company from any and all claims such holder may have
now, or may have in the future arising out of, or related to, the Notes including
without limitation any claims that such holder is entitled to receive additional
principal or interest payments with respect to the Notes or to participate in any
redemption or defeasance of the Notes and |
|
|
|
|
irrevocably constitutes and appoints the Paying Agent as the true and lawful agent
and attorney-in-fact of such holder with respect to any such surrendered Notes, full
power of substitution and resubstitution (such power of attorney being deemed to be an
irrevocable power coupled with an interest), to (a) deliver certificates representing
such Notes, or transfer ownership of such Notes, on the account books maintained by
DTC, together, in any such case, with all accompanying evidences of transfer and
authenticity, to the Company, (b) present such Notes for transfer on the relevant
security register and (c) receive all benefits or otherwise exercise all rights of
beneficial ownership of such Notes (except that the Paying Agent will have no rights
to, or control over, funds from the Company, except as agent for the Company, for the
Purchase Price of any surrendered Notes that are purchased by the Company), all in
accordance with the terms set forth in the Company Notice. |
The undersigned hereby represents and warrants that the undersigned:
|
|
|
owns the Notes surrendered and is entitled to surrender such Notes, and |
|
|
|
|
has full power and authority to surrender, sell, assign and transfer the Notes
surrendered hereby and that when such Notes are accepted for purchase and payment by
the Company, the Company will acquire good title thereto, free and clear of all liens,
restrictions, charges and encumbrances and not subject to any adverse claim or right. |
The undersigned agrees to all of the terms of the Company Notice and this Purchase Notice. The
undersigned will, upon request, execute and deliver any additional documents deemed by the Paying
Agent or the Company to be necessary or desirable to complete the sale, assignment and transfer of
the Notes surrendered hereby.
The undersigned understands that all Notes properly surrendered for purchase and not withdrawn
before 12:00 Midnight, New York City time, on Wednesday, May 14, 2008 will be purchased at the
Purchase Price, in cash, subject to the terms and conditions of the Indenture, the Notes, the
Company Notice and related offer materials, as amended and supplemented from time to time.
Payment for Notes purchased pursuant to the Company Notice will be made by deposit of the
Purchase Price for such Notes with the Paying Agent, which will act as agent for surrendering
holders for the purpose of receiving payments from the Company and transmitting such payments to
the surrendering holders.
The undersigned understands that surrenders of Notes may be withdrawn by written notice of
withdrawal received by the Paying Agent at any time before 12:00 Midnight, New York City time, on
Wednesday, May 14, 2008. See Instruction 1.
All authority conferred or agreed to be conferred by this Purchase Notice shall survive the
death or incapacity of the undersigned and every obligation of the undersigned under this Purchase
Notice shall be binding upon the undersigneds heirs, personal representatives, executors,
administrators, successors, assigns, trustees in bankruptcy and other legal representatives.
The undersigned understands that valid surrender of Notes pursuant to any one of the
procedures described under Procedures to be Followed by Holders Electing to Surrender Notes for
Purchase in the Company Notice and in the instructions hereto will constitute a binding agreement
between the undersigned and the Company upon the terms and subject to the conditions of the Company
Notice, including the undersigneds waiver of any existing defaults and their consequences in
respect of the Notes and the Indenture (including, without limitation, a default in the payment of
interest).
The undersigned understands that the delivery and surrender of the Notes is not effective and
the risk of loss of the Notes does not pass to the Paying Agent, until receipt by the Paying Agent
of this Purchase Notice properly completed and duly executed, together with all accompanying
evidences of authority and any other required documents in a form satisfactory to the Company. All
questions as to the validity, form, eligibility (including time of receipt) and acceptance for
payment of any surrender of Notes pursuant to the procedures described in the Company Notice and
the form and validity (including time of receipt of notices of withdrawal) of all documents will be
determined by the Company, in its sole direction, which determination shall be final and binding on
all parties, subject to a court of law having jurisdiction regarding such matters.
Unless otherwise indicated herein under Special Issuance or Payment Instructions, the
undersigned hereby requests that any Notes representing principal amounts not surrendered be issued
in the name(s) of the undersigned, and checks constituting payments for Notes purchased pursuant to
the Company Notice be issued to the order of the undersigned. Similarly, unless otherwise
indicated herein under Special Delivery Instructions, the undersigned hereby requests that any
Notes representing principal amounts not surrendered and checks constituting payments for Notes to
be purchased pursuant to the Company Notice be delivered to the undersigned at the address(es)
shown herein. In the event that the Special Issuance or Payment Instructions section or the
Special Delivery Instructions section, or both, is completed, the undersigned hereby requests
that any Notes representing principal amounts not surrendered be issued in the name(s) of,
certificates for such Notes be delivered to, and checks constituting payments for Notes purchased
pursuant to the Company Notice be issued in the name(s) of, and be delivered to, the person(s) at
the address(es) so indicated, as applicable. The undersigned recognizes that the Company has no
obligation pursuant to the Special Issuance or Payment Instructions section to transfer any Notes
from the name of the registered holder(s) thereof if the Company does not accept for purchase any
of the principal amount of such Notes so surrendered.
PLEASE SIGN BELOW
(TO BE COMPLETED BY ALL SURRENDERING HOLDERS OF
NOTES REGARDLESS OF WHETHER NOTES
ARE BEING PHYSICALLY DELIVERED HEREWITH)
This Purchase Notice must be signed by the registered holder(s) of Notes exactly as his or her
(their) name(s) appear(s) on certificate(s) for Notes or by person(s) authorized to become
registered holder(s) by
endorsements and documents transmitted with this Purchase Notice. If the signature is by a trustee,
executor, administrator, guardian, attorney-in-fact, officer or other person acting in a fiduciary
or representative capacity, such person must set forth his or her (their) full title below under
Capacity and submit evidence satisfactory to the Company of such persons authority to so act.
See Instruction 3 below.
If the signature appearing below is not of the registered holder(s) of the Notes, then the
registered holder(s) must sign a valid power of attorney.
|
|
|
|
|
|
|
Dated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature(s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capacity |
|
|
|
|
|
Signature(s) must be guaranteed by a commercial bank or trust company or a member
firm of a major stock exchange if Notes are to be delivered, other than to or in
the name of the registered holder. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature Guarantee |
|
|
|
|
|
|
|
Address: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes surrendered (check as applicable) |
|
|
|
|
|
|
|
|
|
|
|
|
|
o |
|
3.75% Convertible Senior Notes due 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
o |
|
3.75% Convertible Senior Notes, Series B due 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificate number(s) (need not be
completed by holders surrendering the Notes by book-entry transfer.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount to be purchased (if less than all): $ ,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Social Security or Other Taxpayer Number |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPECIAL ISSUANCE OR
PAYMENT INSTRUCTIONS
(SEE INSTRUCTIONS 2 THROUGH 6)
To be completed ONLY if certificates for Notes representing principal amount not surrendered
or not purchased and/or the check for the Purchase Price for principal amount of Notes purchased
are to be issued to the order of someone other than the registered holder(s) of the Notes or the
name of the registered holder(s) of the Notes needs to be corrected or changed.
|
|
|
|
|
Issue:
|
|
o
|
|
Notes |
|
|
|
|
|
|
|
o
|
|
Checks (Complete as applicable) |
|
|
|
|
|
Name: |
|
|
|
|
|
|
|
|
|
(Please Print)
|
Address: |
|
|
|
|
|
|
|
|
|
(Please Print)
|
|
|
|
|
|
|
|
|
|
|
(Zip Code)
|
|
|
|
|
|
|
|
|
|
|
Taxpayer Identification or Social Security Number
|
|
|
(See Substitute Form W-9)
|
SPECIAL DELIVERY INSTRUCTIONS
(SEE INSTRUCTIONS 2 THROUGH 6)
To be completed ONLY if certificates for Notes representing principal amount not surrendered
and/or the check for the Purchase Price for principal amount of Notes purchased are to be sent to
an address different from that of the registered holder of the Notes.
|
|
|
|
|
Issue:
|
|
o
|
|
Notes |
|
|
|
|
|
|
|
o
|
|
Checks (Complete as applicable) |
|
|
|
|
|
Name: |
|
|
|
|
|
|
|
|
|
(Please Print)
|
|
|
|
|
|
Address: |
|
|
|
|
|
|
|
|
|
(Please Print)
|
|
|
|
|
|
|
|
|
|
|
(Zip Code)
|
|
|
|
|
|
|
|
|
|
|
Taxpayer Identification or Social Security Number
|
|
|
(See Substitute Form W-9)
|
PLEASE COMPLETE SUBSTITUTE FORM W-9
SIGNATURE GUARANTEE (IF REQUIREDSEE INSTRUCTION 3)
Certain Signatures Must be Guaranteed by an Eligible Institution
|
|
|
|
|
|
|
(Name of Eligible Institution Guaranteeing Signatures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Address (including zip code) and Telephone Number (including area code) of Eligible Institution) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Authorized Signature) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Printed Name) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Title) |
|
|
Date: , 200_
INSTRUCTIONS
FORMING PART OF THE TERMS AND CONDITIONS OF THIS PURCHASE NOTICE
1. |
|
PROCEDURES TO BE FOLLOWED BY HOLDERS ELECTING TO SURRENDER NOTES FOR PURCHASE; WITHDRAWAL OF
SURRENDERS. |
To surrender the Notes pursuant to the Company Notice, certificates representing such Notes,
together with a properly completed and duly executed copy of this Purchase Notice, and any other
documents required by this Purchase Notice must be received by the Paying Agent at the address set
forth herein before 12:00 p.m. Midnight, New York City time, on Wednesday, May 14, 2008. Under the
Indenture and the Notes, the Purchase Date with respect to the offer is Thursday, May 15, 2008 (the
Purchase Date). The method of delivery of this Purchase Notice, certificates for Notes and all
other required documents to the Paying Agent is at the election and risk of holders. If such
delivery is to be made by mail, it is suggested that holders use properly insured registered mail,
return receipt requested, and that the mailing be made sufficiently in advance of May 14, 2008 to
permit delivery to the Paying Agent before such date. Except as otherwise provided below, the
delivery will be deemed made when actually received or confirmed by the Paying Agent. THIS PURCHASE
NOTICE AND NOTES SHOULD BE SENT ONLY TO THE PAYING AGENT, AND NOT TO THE COMPANY.
This Purchase Notice is also being supplied for informational purposes only to persons who
hold Notes in book-entry form through the facilities of DTC. Surrender of Notes held through DTC
must be made pursuant to the procedures described under Procedures to be Followed by Holders
Electing to Surrender Notes for Purchase Delivery of Notes Notes in Global Form in the Company
Notice.
Except as described herein for surrender of Notes held through DTC, unless the Notes being
surrendered are deposited with the Paying Agent before 12:00 Midnight, New York City time, on
Wednesday, May 14, 2008 (accompanied by the appropriate, properly completed and duly executed
Purchase Notice and any required signature guarantees and other documents required by this Purchase
Notice), the Company may, in its sole discretion, reject such surrender. Payment for Notes will be
made only against deposit of surrendered Notes.
By executing this Purchase Notice, a surrendering holder waives any right to receive any
notice of the acceptance for payment of surrendered Notes.
For a full description of the procedures for surrendering Notes, see Procedures to be
Followed by Holders Electing to Surrender Notes for Purchase in the Company Notice.
Surrenders of Notes may be withdrawn at any time before 12:00 Midnight, New York City time, on
May 14, 2008 pursuant to the procedures described in the Company Notice.
Surrenders of Notes pursuant to the Company Notice will be accepted only in principal amounts
equal to $1,000 or integral multiples thereof. If less than the entire principal amount of any
Notes evidenced by a submitted certificate is surrendered, the surrendering holder must fill in the
principal amount surrendered in the appropriate place in the Purchase Notice. The entire principal
amount represented by the certificates for all Notes delivered to the Paying Agent will be deemed
to have been surrendered unless otherwise indicated. If the entire principal amount of all Notes is
not surrendered, certificates for the principal amount of Notes not surrendered will be sent to the
holder unless otherwise provided in the appropriate place in this Purchase Notice (see Instruction
4), promptly after the Notes are accepted for purchase.
3. |
|
SIGNATURES ON THIS PURCHASE NOTICE, BOND POWERS AND ENDORSEMENT: GUARANTEE OF SIGNATURES. |
If this Purchase Notice is signed by the registered holder(s) of the Notes surrendered hereby,
the signature(s) must correspond with the name(s) as written on the face of the certificate(s)
without alteration, enlargement or any change whatsoever.
IF THIS PURCHASE NOTICE IS EXECUTED BY A HOLDER OF NOTES WHO IS NOT THE REGISTERED HOLDER,
THEN THE REGISTERED HOLDER MUST SIGN A VALID POWER OF ATTORNEY, WITH THE SIGNATURE OF SUCH
REGISTERED HOLDER GUARANTEED BY AN ELIGIBLE INSTITUTION.
If any of the Notes surrendered hereby are owned of record by two or more joint owners, all
such owners must sign this Purchase Notice. If any surrendered Notes are registered in different
names on several certificates, it will be necessary to complete, sign and submit as many copies of
this Purchase Notice and any necessary accompanying documents as there are different names in which
certificates are held.
If this Purchase Notice is signed by the holder, and the certificates for any principal amount
of Notes not surrendered for purchase are to be issued (or if any principal amount of Notes that is
not surrendered for purchase is to be reissued or returned) to the holder, and checks constituting
payments for Notes to be purchased pursuant to the Company Notice are to be issued to the order of
the holder, then the holder need not endorse any certificates for surrendered Notes nor provide a
separate bond power. In any other case (including if this Purchase Notice is not signed by the
holder), the holder must either properly endorse the certificates for Notes surrendered or transmit
a separate properly completed bond power with this Purchase Notice (in either case, executed
exactly as the name(s) of the registered holder(s) appear(s) on such Notes), with the signature on
the endorsement or bond power guaranteed by an eligible guarantor institution (as defined in Rule
17Ad-15(a)(2) under the Securities Exchange Act of 1934, as amended), (an Eligible
Institution), unless such certificates or bond powers are executed by an Eligible Institution.
If this Purchase Notice or any certificates representing Notes or bond powers are signed by
trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or
others acting in a fiduciary or representative capacity, such persons should so indicate when
signing, and proper evidence satisfactory to the Company of their authority so to act must be
submitted with this Purchase Notice.
Endorsements on certificates for Notes and signatures on bond powers provided in accordance
with this Instruction 3 by registered holders not executing this Purchase Notice must be guaranteed
by an Eligible Institution.
No signature guarantee is required if: (1) this Purchase Notice is signed by the registered
holder(s) of the Notes surrendered herewith and the payments for the Notes to be purchased are to
be made, or any Notes for principal amounts not surrendered for purchase are to be issued, directly
to such registered holder(s) and neither the Special Issuance or Payment Instructions section nor
the Special Delivery Instructions section of this Purchase Notice has been completed; or (2) such
Notes are surrendered for the account of an Eligible Institution. In all other cases, all
signatures on letters of transmittal accompanying Notes must be guaranteed by an Eligible
Institution.
4. |
|
SPECIAL ISSUANCE OR PAYMENT AND SPECIAL DELIVERY INSTRUCTIONS. |
Surrendering holders should indicate in the applicable place the name and address to which
certificates representing Notes for principal amounts not surrendered or not accepted for purchase
or checks constituting payments for Notes purchased pursuant to the Company Notice are to be issued
or sent, if different from the name and address of the holder signing this Purchase Notice. In the
case of issuance in a different name, the taxpayer identification or social security number of the
person named must also be indicated. If no instructions are given, Notes not surrendered or not
accepted for purchase will be returned to the holder of the Notes surrendered.
5. |
|
BACKUP WITHHOLDING; TAX IDENTIFICATION NUMBER; PURPOSE OF FORM W-9. |
The Paying Agent must withhold 28% of any payments made to the surrendering holder or other
payee,
unless the payee establishes that the payment is not subject to backup withholding or that the
payee is exempt from backup withholding. Backup withholding is not an additional federal income
tax. Rather, the federal income tax liability of persons subject to backup withholding will be
reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund
may be obtained from the Internal Revenue Service (the IRS), provided that the required
information is properly furnished to the IRS.
To establish that payments made to a surrendering U.S. Holder (as defined below) are not
subject to backup withholding, such U.S. Holder generally may deliver to the Paying Agent the
enclosed Substitute Form W-9, Request for Taxpayer Identification Number and Certification,
providing such U.S. Holders correct taxpayer identification number (TIN) and certifying that:
|
|
|
the TIN provided is correct (or that such U.S. Holder is awaiting a TIN); |
|
|
|
|
(1) the U.S. Holder is exempt from backup withholding, (2) the U.S. Holder has not
been notified by the IRS that the U.S. Holder is subject to backup withholding as a
result of a failure to report all interest or dividends, or (3) the IRS has notified
the U.S. Holder that such holder is no longer subject to backup withholding; and |
|
|
|
|
such U.S. Holder is a United States person (as defined in section 7701(a)(30) of
the Internal Revenue Code of 1986, as amended). |
The U.S. Holder is required to give the Paying Agent the TIN of the registered holder of the
Notes. If the Notes are held in more than one name or are held not in the name of the actual owner,
consult the enclosed Guidelines for Certification of Taxpayer Identification Number on Substitute
Form W-9 for additional guidance on which number to report.
For the purposes of these instructions, a U.S. Holder is a beneficial owner of the Notes
that is, for U.S. federal income tax purposes: (a) an individual who is a citizen or resident of
the United States; (b) a corporation or partnership (or other business entity treated as a
corporation or partnership) created or organized in or under the laws of the United States or any
state thereof (including the District of Columbia); (c) an estate the income of which is subject to
U.S. federal income taxation regardless of its source; or (d) a trust if a court within the United
States can exercise primary supervision over its administration and one or more U.S. persons have
the authority to control all of the substantial decisions of that trust or a trust that was in
existence on August 20, 1996 and validly elected to continue to be treated as a domestic trust.
Certain holders (including, among others, corporations and certain foreign persons) are not
subject to these backup withholding requirements. See the enclosed Guidelines for Certification of
Taxpayer Identification Number on Substitute Form W-9 for a list of exempt U.S. Holders. To avoid
possible erroneous backup withholding, exempt U.S. Holders, while not required to file Substitute
Form W-9, should complete and return the Substitute Form W-9 and check the Exempt from backup
withholding box on the form. Foreign holders may prevent backup withholding by (1) submitting the
appropriate properly completed IRS Form W-8 (available at the IRS website at www.irs.gov) to the
Paying Agent and certifying under penalties of perjury to the holders exempt status or (2)
otherwise establishing an exemption.
If a surrendering holder does not provide the Paying Agent with the correct TIN, such holder
may be subject to a $50 penalty imposed by the IRS, and payments made with respect to the tendered
Notes may be subject to backup withholding. If the surrendering holder makes a false statement
with no reasonable basis that results in no backup withholding, such holder is subject to a $500
penalty.
See the enclosed Guidelines for Certification of Taxpayer Identification Number on Substitute
Form W-9 for additional information and instructions.
The Company will pay all transfer taxes, if any, payable on the purchase and transfer of Notes
purchased
pursuant to the Company Notice, except in the case of deliveries of certificates for Notes for
principal amounts not surrendered for payment that are to be registered or issued in the name of
any person other than the holder of Notes surrendered hereby, in which case the amount of any
transfer taxes (whether imposed on the registered holder or such other person) payable on account
of the transfer to such person will be deducted from the Purchase Price unless satisfactory
evidence of the payment of such taxes or exemption therefrom is submitted.
Except as provided in this Instruction 6, it will not be necessary for transfer stamps to be
affixed to the certificates listed in this Purchase Notice.
All questions as to the validity, form, eligibility (including the time of receipt) and
acceptance for payment of any surrenders of Notes pursuant to the procedures described in the
Company Notice and the form and validity (including the time of receipt of notices of withdrawal)
of all documents will be determined by the Company, in its sole discretion, which determination
shall be final and binding on all parties, subject to a court of law having jurisdiction regarding
such matters. The Company reserves the absolute right to reject any or all surrenders determined by
them not to be in proper form or the acceptance of or payment for which may be unlawful. The
Company also reserves the absolute right to waive any of the conditions of the Company Notice and
any defect or irregularity in the surrender of any particular Notes. The Companys interpretations
of the terms and conditions of the Company Notice (including without limitation the instructions in
this Purchase Notice) shall be final and binding, subject to a court of law having jurisdiction
regarding such matters. No alternative, conditional or contingent surrenders will be accepted.
Unless waived, any irregularities in connection with surrenders must be cured within such time as
the Company shall determine. None of the Company, the Paying Agent or any other person will be
under any duty to give notification of any defects or irregularities in such surrenders or will
incur any liability to holders for failure to give such notification. Surrenders of such Notes
shall not be deemed to have been made until such irregularities have been cured or waived. Any
Notes received by the Paying Agent that are not properly surrendered and as to which the
irregularities have not been cured or waived will be returned by the Paying Agent to the
surrendering holders, unless such holders have otherwise provided herein, as promptly as practical
following the Purchase Date.
8. |
|
MUTILATED, LOST, STOLEN OR DESTROYED CERTIFICATES FOR NOTES. |
Any holder of Notes whose certificates for Notes have been mutilated, lost, stolen or
destroyed should contact the Paying Agent at the address indicated above for further instructions.
9. |
|
REQUESTS FOR ASSISTANCE OR ADDITIONAL COPIES. |
Questions relating to the procedure for surrendering Notes and requests for assistance or
additional copies of the Company Notice and this Purchase Notice may be directed to, and additional
information about the Company Notice may be obtained from Kathryn Maxwell at The Bank of New York
Trust Company, National Association, whose address appears on the cover of this Purchase Notice, at
(713) 483-6817.
exv99wa1wc
Exhibit (a)(1)(c)
NOTICE OF WITHDRAWAL
OF SURRENDER OF
3.75% CONVERTIBLE SENIOR NOTES DUE 2023
CUSIP Numbers: 15189TAA5 and 15189TAC1*
3.75% CONVERTIBLE SENIOR NOTES, SERIES B DUE 2023
CUSIP Number: 15189TAM9*
ISSUED BY
CENTERPOINT ENERGY, INC.
Pursuant to the Company Notice given by
CenterPoint Energy, Inc.
Dated April 17, 2008
SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE COMPANY NOTICE, THE RIGHT OF HOLDERS TO
SURRENDER NOTES FOR PURCHASE EXPIRES AT 12:00 MIDNIGHT, NEW YORK CITY TIME, ON WEDNESDAY, MAY 14,
2008. NOTES SURRENDERED FOR PURCHASE MAY BE WITHDRAWN IF THE REGISTERED HOLDER SUBMITS AND THE
PAYING AGENT RECEIVES THIS COMPLETED AND SIGNED NOTICE OF WITHDRAWAL NO LATER THAN 12:00 MIDNIGHT,
NEW YORK CITY TIME, ON WEDNESDAY, MAY 14, 2008.
HOLDERS THAT SURRENDER THROUGH THE DEPOSITORY TRUST COMPANY (DTC) NEED NOT SUBMIT A PHYSICAL
NOTICE OF WITHDRAWAL TO THE PAYING AGENT IF SUCH HOLDERS COMPLY WITH THE TRANSMITTAL PROCEDURES OF
DTC.
The Paying Agent is:
The Bank of New York Trust Company, National Association
|
|
|
|
|
Mail:
|
|
Express Delivery:
|
|
Hand Delivery: |
|
|
|
|
|
The Bank of New York Trust
|
|
The Bank of New York Trust
|
|
The Bank of New York |
Company, N.A.
|
|
Company, N.A. |
|
101 Barclay Street |
Global Corporate Trust
|
|
Global Corporate Trust
|
|
4 New York Plaza 1st Floor |
P.O. Box 2320
|
|
2001 Bryan Street, 9th Floor
|
|
New York, NY 10286 |
Dallas, TX 75221-2320
|
|
Dallas, TX 75201
|
|
|
For Information:
Kathryn Maxwell
(713) 483-6817
Capitalized terms used herein but not defined herein shall have the respective meanings
ascribed to such terms in the Company Notice dated April 17 2008 of CenterPoint Energy, Inc., a
Texas corporation (the Company), and the accompanying Purchase Notice, relating to the offer to
purchase by the Company, at the option of the holder thereof, the Companys 3.75% Convertible
Senior Notes due 2023 and 3.75% Convertible Senior Notes, Series B due 2023 (collectively, the
Notes) for $1,000 in cash per Note plus accrued and unpaid interest to the Purchase Date, subject
to the terms and conditions of the Indenture, the Notes and related offer materials, as amended and
supplemented from time to time (the Offer). The amount of interest that will be payable with
respect to the Notes on the Purchase Date is $18.75 per $1,000 principal amount of the Notes.
This Notice of Withdrawal is to be completed by registered holders of Notes desiring to
withdraw the surrender of such Notes in the Offer if (1) Notes have been previously surrendered to
the Paying Agent, or (2) delivery of such Notes has been previously made by book-entry transfer to
the Paying Agents account at DTC pursuant to the book-entry transfer procedures described under
the caption Procedures to Be Followed by Holders Electing to Surrender Notes for Purchase in the
Company Notice.
* |
|
These CUSIP Numbers have been assigned to this issue by the CUSIP Service Bureau and are
included solely for the convenience of the holders of the Notes. Neither the Company nor the
Trustee shall be responsible for the selection or use of these CUSIP Numbers, nor is any
representation made as to their correctness on the Notes or as indicated in this notice. |
Ladies and Gentlemen:
The undersigned hereby withdraws the undersigneds surrender for purchase to the Company of
the Notes described below, which Notes were previously surrendered for purchase pursuant to the
Company Notice.
The undersigned understands that the withdrawal of Notes previously surrendered in this Offer,
effected by this Notice of Withdrawal, may not be rescinded and that such Notes will no longer be
deemed to be validly surrendered for purchase for purposes of the undersigneds Purchase Notice.
Such withdrawn Notes may be resurrendered for purchase only by following the procedures for
surrendering set forth in the Company Notice and in the accompanying Purchase Notice.
All authority conferred or agreed to be conferred in this Notice of Withdrawal shall not be
affected by and shall survive the death or incapacity of the undersigned, and any obligations of
the undersigned under this Notice of Withdrawal shall be binding upon the heirs, personal and legal
representatives, trustees in bankruptcy, successors and assigns of the undersigned.
DESCRIPTION OF NOTES BEING WITHDRAWN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate |
|
|
|
|
|
|
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
|
|
Amount |
|
|
|
|
|
|
|
|
Aggregate |
|
Which |
|
|
|
|
|
|
Aggregate |
|
Principal |
|
Remains |
|
|
|
|
|
|
Principal |
|
Amount |
|
Subject to |
Name(s) and Address(es) of Registered
Holder(s) (Please fill |
|
|
|
Certificate |
|
Amount |
|
Being |
|
Purchase |
in, if blank) |
|
CUSIP Number |
|
Number(s)* |
|
Represented |
|
Withdrawn** |
|
Notice |
|
|
|
|
|
|
|
|
|
|
|
TOTAL PRINCIPAL AMOUNT BEING WITHDRAWN
|
|
|
* |
|
Need not be completed by holders who surrendered the Notes by book-entry transfer. |
|
** |
|
Unless otherwise indicated in the column labeled Aggregate Principal Amount Being Withdrawn
and subject to the terms and conditions of the Company Notice, a holder will be deemed to have
withdrawn the entire aggregate principal amount represented by the Notes indicated in the column
labeled Aggregate Principal Amount Represented. |
METHOD OF DELIVERY
o |
|
Check here if Notes were physically delivered to the Paying Agent. |
|
o |
|
Check here if Notes were delivered by book-entry transfer made to the account maintained by
the Paying Agent with DTC and complete the following: |
|
|
|
|
|
Name of Surrendering Institution:
|
|
|
|
|
|
|
|
|
(Please Print) |
|
|
Address: |
|
|
|
|
|
|
|
|
(Please Print) |
|
|
|
|
|
|
|
|
|
|
Zip Code |
Telephone: |
|
|
|
|
|
|
|
Facsimile: |
|
|
|
|
|
|
|
Contact Person: |
|
|
|
|
|
|
|
Date Surrendered: |
|
|
|
|
|
|
|
DTC Account Number: |
|
|
|
|
|
|
|
Transaction Code Number: |
|
|
|
|
|
|
|
PLEASE SIGN BELOW
(TO BE COMPLETED BY ALL REGISTERED HOLDERS OF
NOTES BEING WITHDRAWN)
This Notice of Withdrawal must be signed by the registered holder(s) of Notes exactly as his
(their) name(s) appear(s) on certificate(s) for Notes or by person(s) authorized to become
registered holder(s) by endorsements and documents transmitted with this Notice of Withdrawal. If
the signature is by a trustee, executor, administrator, guardian, attorney-in-fact, officer or
other person acting in a fiduciary or representative capacity, such person must set forth his or
her full title below under Capacity and submit evidence satisfactory to the Company of such
persons authority to so act.
If the signature appearing below is not of the registered holder(s) of the Notes, then the
registered holder(s) must sign a valid power of attorney.
(Signature(s) of Holder(s) or Authorized Signatory)
|
|
|
|
|
|
|
|
|
Date:
|
|
|
|
|
, 2008 |
|
|
|
|
|
|
|
|
|
|
|
Name(s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Please Print) |
|
|
|
|
|
|
|
|
|
|
|
|
Capacity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Address: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Including Zip Code) |
|
|
|
|
|
|
|
|
Area Code and Telephone No.: ( ) |
|
|
|
|
|
|
|
|
|
SIGNATURE GUARANTEE (IF REQUIRED)
Certain Signatures Must be Guaranteed by an Eligible Institution
(Name of Eligible Institution Guaranteeing Signatures)
(Address (including zip code) and Telephone Number (including area code) of Eligible Institution)
(Authorized Signature)
(Printed Name)
(Title)
Date: , 2008.
exv99wa1wd
Exhibit (a)(1)(D)
|
|
|
|
|
|
|
|
|
Substitute
Form
|
|
W-9
|
|
|
Request for Taxpayer
Identification Number and Certification
|
|
|
Give form to the requester. Do not send to the IRS. |
Department of the Treasury
|
|
|
|
|
Internal Revenue Service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name (as shown on your income tax return) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business name, if different from above |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Check appropriate box:
|
|
o
|
|
Individual
|
|
o
|
|
Corporation
|
|
o
|
|
Partnership
|
|
o
|
|
Other
|
|
|
o
|
|
Exempt from backup withholding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
City, state, and ZIP code |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Part I
|
|
|
Taxpayer Identification Number (TIN) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enter your TIN on the appropriate line. The TIN provided must match the name given on the top line to
avoid backup withholding. For individuals, this is your social security number (SSN). However, for a
resident alien, sole proprietor, or disregarded entity, see What Number to Give the Requester in the
attached Guidelines For Certification of Taxpayer Identification Number on Substitute Form W-9. For other
entities, it is your employer identification number (EIN). If you do not have a number, see Obtaining a
Number in the attached Guidelines.
Note. If the account is in more than one name, see What Number to Give the Requester in the attached
Guidelines for instructions on whose number to enter.
|
|
or |
|
|
Social Security Number
Employer Identification number |
|
|
|
|
|
|
|
Under penalties of perjury, I certify that:
1. |
|
The number shown on this form is my correct Taxpayer Identification Number (or I am waiting for a number to be issued to me), and |
|
2. |
|
I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a
failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and |
|
3. |
|
I am a U.S. person (including a U.S. resident alien). |
Certification Instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on
your tax return.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sign Here
|
|
|
Signature of U.S. Person
|
|
4
|
|
Date
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAILURE TO COMPLETE AND RETURN THIS FORM MAY RESULT IN BACKUP WITHHOLDING
OF 28% OF ANY PAYMENTS MADE TO YOU PURSUANT TO THE TENDER OFFER.
exv99wa1we
Exhibit (a)(1)(E)
GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
NUMBER ON SUBSTITUTE FORM W-9
What Number to Give the Requester. A Social Security number (SSN) has nine digits separated by
two hyphens: i.e. 000-00-0000. An employer identification number (EIN) has nine digits separated
by only one hyphen: i.e. 00-0000000. The table below will help determine the number to give the
payer.
|
|
|
|
|
|
|
For this type of account: |
|
Give the SSN of: |
1. |
|
An individuals account |
|
The individual |
|
|
|
|
|
|
|
2. |
|
Two or more individuals (joint
account) |
|
The actual owner of the account or,
if combined funds, the first
individual on the account1 |
|
|
|
|
|
|
|
3. |
|
Custodian account of a minor
(Uniform Gift to Minors Act) |
|
The minor2 |
|
|
|
|
|
|
|
4.
|
|
a.
|
|
The usual revocable savings
trust account (grantor is also
trustee)
|
|
The grantor-trustee1 |
|
|
|
|
|
|
|
|
|
b.
|
|
So-called trust account
that is not a legal or valid
trust under State law
|
|
The actual owner1 |
|
|
|
|
|
|
|
5. |
|
Sole proprietorship or disregarded entity
owned by an individual |
|
The owner3 |
|
|
|
|
|
|
|
For this type of account: |
|
Give
the EIN of: |
6. |
|
Disregarded entity not owned by
an individual. |
|
The owner |
|
|
|
|
|
|
|
7. |
|
A valid trust, estate, or
pension trust |
|
The legal entity4 |
|
|
|
|
|
|
|
8. |
|
Corporate or LLC electing
corporate status on Form 8832 |
|
The corporation |
|
|
|
|
|
|
|
9. |
|
Association, club, religious,
charitable, educational, or other
tax-exempt organization |
|
The organization |
|
|
|
|
|
|
|
10. |
|
Partnership or multi-member LLC |
|
The partnership |
|
|
|
|
|
|
|
11. |
|
Account with the Department of
Agriculture in the name of a
public entity (such as a state or
local government, school district,
or prison) that receives
agricultural program payments |
|
The public entity |
|
|
|
|
|
|
|
12. |
|
A broker or registered nominee |
|
The broker or nominee |
|
|
|
1 |
|
List first and circle the name of the person whose number you furnish. If only one
person on a joint account has an SSN, that persons number must be furnished. |
|
2 |
|
Circle the minors name and furnish the minors SSN. |
|
3 |
|
You must show your individual name and you may also enter your business or DBA name
on the second name line. You may use either your SSN or EIN (if you have one), but the IRS
encourages you to use your SSN. |
|
4 |
|
List first and circle the name of the legal trust, estate, or pension trust. (Do not
furnish the TIN of the personal representative or trustee unless the legal entity itself is
not designated in the account title.) |
Note. If no name is circled when more than one name is listed, the number will be considered to be
that of the first name listed.
GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
NUMBER ON SUBSTITUTE FORM W-9
Obtaining a Number
If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5,
Application for a Social Security Card, from your local Social Security Administration office or
get this form online at www.socialsecurity.gov/online/ss-5.pdf. You may also get this form by
calling 1-800-772-1213. Use Form SS-4, Application for Employer Identification Number, to apply
for an EIN. You can apply for an EIN online by accessing the IRS website at
www.irs.gov/businesses/ and clicking on Employer ID Numbers under Related Topics. You can get Form
SS-4 from the IRS by visiting www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
If you are a resident alien and you do not have and are not eligible to get a social security
number, your taxpayer identification number is your Internal Revenue Service individual taxpayer
identification number. If you do not have an individual taxpayer identification number, use Form
W-7, Application for IRS Individual Taxpayer Identification Number, to apply for one. You can get
Form W-7 from the IRS Internal Revenue Service by visiting www.irs.gov or by calling 1-800-TAX-FORM
(1-800-829-3676).
If you do not have a TIN, write Applied For in the space for the TIN, sign and date the
form, and give it to the requester. For interest and dividend payments, and certain payments made
with respect to readily tradable instruments, generally you will have 60 days to get a TIN and give
it to the requester before you are subject to backup withholding on payments. The 60-day rule
does not apply to other types of payments. You will be subject to backup withholding on all such
payments until you provide your TIN to the requester.
Note. Writing Applied For means that you have already applied for a TIN or that you intend
to apply for one soon.
Payees Exempt from Backup Withholding
Payees specifically exempted from backup withholding on all dividend and interest payments and
on broker transactions include the following:
|
|
|
An organization exempt from tax under section 501(a), any IRA, or a custodial account
under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2), |
|
|
|
|
The United States or any of its agencies or instrumentalities, |
|
|
|
|
A State, the District of Columbia, a possession of the United States, or any of their
subdivisions or instrumentalities, |
|
|
|
|
A foreign government or any of its political subdivisions, agencies or
instrumentalities,and |
|
|
|
|
An international organization or any of its agencies or instrumentalities. |
Other payees that may be exempt from backup withholding include:
|
|
|
A corporation, |
|
|
|
|
A foreign central bank of issue, |
|
|
|
|
A dealer in securities or commodities required to registered in the United States, the
District of Columbia, or a possession of the United States, |
|
|
|
|
A real estate investment trust, |
|
|
|
|
An entity registered at all times during the tax year under the Investment Company Act of
1940, |
|
|
|
|
A common trust fund operated by a bank under section 584(a), |
|
|
|
|
A financial institution, |
|
|
|
|
A middleman known in the investment community as a nominee or custodian, and |
|
|
|
|
A trust exempt from tax under section 664 or described in section 4947. |
If you are exempt, enter your name and check the appropriate box for your status, then check
the Exempt from backup withholding box in the line following the business name, sign and date the
form.
Note. If you are exempt from backup withholding, you should still complete this form to avoid
possible erroneous backup withholding.
GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
NUMBER ON SUBSTITUTE FORM W-9
Privacy Act Notice
Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons
who must file information returns with the IRS to report interest, dividends, and certain other
income paid to you, mortgage interest you paid, the acquisition or abandonment of secured property,
cancellation of debt, or contributions you made to an IRA, or Archer MSA or HSA. The IRS uses the
numbers for identification purposes and to help verify the accuracy of your tax return. The IRS
may also provide this information to the Department of Justice for civil and criminal litigation,
and to cities, states, the District of Columbia, and U.S. possessions to carry out their tax laws.
The IRS may also disclose this information to other countries under a tax treaty, to federal and
state agencies to enforce federal nontax criminal laws, or to federal law enforcement and
intelligence agencies to combat terrorism.
You must provide your TIN whether or not you are required to file a tax return. Payers must
generally withhold 28% (or other rate specified by the Internal Revenue Code) of taxable interest,
dividend, and certain other payments to a payee who does not give a TIN to a payer. Certain
penalties may also apply.
Penalties
|
|
Failure to Furnish TIN. If you fail to furnish your correct TIN to a requester, you are
subject to a penalty of $50 for each such failure unless your failure is due to reasonable
cause and not to willful neglect. |
|
|
|
Civil Penalty for False Information With Respect to Withholding. If you make a false
statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty. |
|
|
|
Criminal Penalty for Falsifying Information. Willfully falsifying certifications or
affirmations may subject you to criminal penalties including fines and/or imprisonment. |
|
|
|
Misuse of TINs. If the requester discloses or uses taxpayer identification numbers in
violation of Federal law, the payer may be subject to civil and criminal penalties. |
FOR ADDITIONAL INFORMATION CONTACT YOUR TAX CONSULTANT OR THE INTERNAL REVENUE SERVICE.
exv99wa5wa
Exhibit (a)(5)(A)
CenterPoint Energy Announces Redemption of its 3.75 Percent
Convertible Senior Notes Due 2023
HOUSTON April 16, 2008 CenterPoint Energy, Inc. (NYSE: CNP) today announced the planned
redemption of all of its outstanding 3.75 percent Convertible Senior Notes due 2023 (Old Notes) and
3.75 percent Convertible Senior Notes, Series B due 2023 (New Notes) on May 30, 2008 (Redemption
Date). The redemption price will be $1,000 in cash plus accrued and unpaid interest, including
contingent interest, if any, to the Redemption Date. The amount of regular interest that will be
payable with respect to the notes on the Redemption Date is $1.56 per $1,000 principal amount.
Pursuant to the indenture governing the notes, the amount of contingent interest that will be
payable with respect to the notes on the Redemption Date, if any, will be determined by reference
to the average trading price of the notes for the five business days ending on May 13, 2008.
The Old Notes are currently convertible into shares of CenterPoint Energys common stock. The New
Notes are currently convertible into cash or, at CenterPoint Energys option, a combination of cash
and shares of CenterPoint Energys common stock. The current conversion rate of the notes is
89.4381 shares of CenterPoint Energys common stock per $1,000 principal amount of the notes, so
long as specified conditions are met and subject to adjustments under certain circumstances. The
notes may be converted at any time before 5 p.m. EDT on the Redemption Date. With respect to the
Old Notes, CenterPoint Energy will satisfy its conversion obligation by delivering shares of
CenterPoint Energys common stock. With respect to the New Notes, CenterPoint Energy will satisfy
its conversion obligation by paying an amount in cash equal to the lesser of the aggregate
principal amount of New Notes being converted and CenterPoint Energys conversion obligation with
respect to such New Notes, and by delivering shares of CenterPoint Energys common stock to the
extent that the conversion obligation exceeds the aggregate principal amount of New Notes being
converted. On the Redemption Date, the notes will be redeemed unless they are converted prior to 5
p.m. EDT on the Redemption Date.
Holders of notes at 5 p.m. EDT on May 1, 2008, the regular record date for the May 15, 2008
interest payment on the notes, will receive interest in the amount of $18.75 per $1,000 principal
amount of notes payable on May 15, 2008. Notes surrendered for conversion by holders during the
period from 5 p.m. EDT on May 1, 2008 to 9 a.m. EDT on May 15, 2008, must be accompanied by a
payment of $18.75 per $1,000 principal amount of notes surrendered for conversion, which amount
equals the regular interest payment that the holder is to receive on the notes. Holders that
submit notes for conversion after 9 a.m. EDT on May 15, 2008, need not submit any interest payment
in connection with the conversion.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company
that includes electric transmission & distribution, natural gas distribution, competitive natural
gas sales and services, interstate pipelines and field services operations. The company serves more
than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi,
Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy
and its predecessor companies have been in business for more than 130 years. For more information,
visit CenterPoint Energys website at www.CenterPointEnergy.com.
exv99wa5wb
Exhibit (a)(5)(B)
CenterPoint Energy Announces Purchase Option of
3.75 Percent Convertible Senior Notes Due 2023
HOUSTON April 17, 2008 CenterPoint Energy, Inc. (NYSE: CNP) today announced that holders of
its 3.75 percent Convertible Senior Notes due 2023 (Old Notes) and 3.75 percent Convertible Senior
Notes, Series B due 2023 (New Notes) have the option to require CenterPoint Energy to purchase
their notes on May 15, 2008 (Purchase Date) at a purchase price of $1,000 in cash plus accrued and
unpaid interest to the Purchase Date. The amount of interest that will be payable with respect to
the notes on the Purchase Date is $18.75 per $1,000 principal amount. If all outstanding notes are
surrendered for purchase, the aggregate cash purchase price will be approximately $398.2 million.
Holders may exercise their option to require CenterPoint Energy to purchase their notes by
delivering a purchase notice to The Bank of New York, the paying agent, before the expiration of
the purchase option at 12:00 Midnight, EDT on Wednesday, May 14, 2008.
The Old Notes are currently convertible into shares of CenterPoint Energys common stock. The New
Notes are currently convertible into cash or, at CenterPoint Energys option, a combination of cash
and shares of CenterPoint Energys common stock. The current conversion rate of the notes is
89.4381 shares of CenterPoint Energys common stock per $1,000 principal amount of the notes, so
long as specified conditions are met and subject to adjustments under certain circumstances. With
respect to the Old Notes, CenterPoint Energy will satisfy its conversion obligation by delivering
shares of CenterPoint Energys common stock. With respect to the New Notes, CenterPoint Energy
will satisfy its conversion obligation by paying an amount in cash equal to the lesser of the
aggregate principal amount of New Notes being converted and CenterPoint Energys conversion
obligation with respect to such New Notes, and by delivering shares of CenterPoint Energys common
stock to the extent that the conversion obligation exceeds the aggregate principal amount of New
Notes being converted.
This press release is for informational purposes only and does not constitute an offer to buy or
the solicitation of an offer to sell any notes. CenterPoint Energy plans to file a Tender Offer
Statement on Schedule TO with the Securities and Exchange Commission later today. CenterPoint
Energy will make available to note holders, through the Depository Trust Company, documents
specifying the terms, conditions and procedures for surrendering and withdrawing notes for
purchase. Note holders are encouraged to read these documents carefully before deciding whether to
exercise their option to require CenterPoint Energy to purchase their notes as these documents
contain important information regarding the details of CenterPoint Energys obligation to purchase
the notes. Holders of the notes and other interested parties may obtain a free copy of these
documents at the Securities and Exchange Commissions website, www.sec.gov, at the companys
website, www.CenterPointEnergy.com, or from CenterPoint Energy, Inc. at 1111 Louisiana, Houston,
Texas 77002, Attn: Investor Relations.
This press release includes forward-looking statements. Actual events and results may differ
materially from those projected. The statements in this press release regarding future events,
including the timing of the filing of the Schedule TO with the Securities and Exchange Commission,
and other statements that are not historical facts are forward-looking statements.
Factors that could affect actual results include the financial performance of CenterPoint Energy,
the timing and impact of future regulatory decisions, and other factors discussed in CenterPoint
Energys Form 10-K for the period ended December 31, 2007 and other filings with the Securities and
Exchange Commission.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company
that includes electric transmission & distribution, natural gas distribution, competitive natural
gas sales and services, interstate pipelines and field services operations. The company serves more
than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi,
Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy
and its predecessor companies have been in business for more than 130 years. For more information,
visit CenterPoint Energys website at www.CenterPointEnergy.com.
exv99wa5wc
Exhibit (a)(5)(C)
NOTICE OF REDEMPTION
To the Holders of
CenterPoint Energy, Inc.
3.75% Convertible Senior Notes due 2023
CUSIP Numbers: 15189TAA5 and 15189TAC1*
3.75% Convertible Senior Notes, Series B due 2023
CUSIP Number: 15189TAM9*
NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the Indenture dated as of May 19, 2003
(the Original Indenture) by and between CenterPoint Energy, Inc. (the Company) and The Bank of
New York Trust Company, National Association (successor to JPMorgan Chase Bank), as Trustee (the
Trustee), as amended and supplemented by Supplemental Indenture No. 1 dated as of May 19, 2003
(Supplemental Indenture No. 1), under which the 3.75% Convertible Senior Notes due 2023 (the Old
Notes) were issued, and Supplemental Indenture No. 6 dated as of August 23, 2005 (Supplemental
Indenture No. 6 and, together with the Original Indenture and Supplemental Indenture No. 1, the
Indenture), under which the 3.75% Convertible Senior Notes, Series B due 2023 (the New Notes
and, together with the Old Notes, the Notes) were issued, all outstanding Notes will be redeemed
in full on May 30, 2008 (the Redemption Date) at a redemption price of 100% of the principal
amount thereof, plus accrued and unpaid interest, including contingent interest, if any, to the
Redemption Date (the Redemption Price). The amount of interest that will be payable with respect
to the Notes on the Redemption Date is $1.56 per $1,000 principal amount of the Notes. Pursuant to
the Indenture, the amount of contingent interest that will be payable with respect to the Notes on
the Redemption Date, if any, will be determined by reference to the average trading price of the
Notes for the five business days ending on May 13, 2008 (the Average Trading Price). If the
Average Trading Price equals or exceeds $1,200 per $1,000 principal amount of Notes, the amount of
contingent interest payable for the six-month interest period ending November 14, 2008 will equal
0.25% of the Average Trading Price per $1,000 principal amount of Notes. The amount of contingent
interest, if any, that will be payable with respect to the Notes on the Redemption Date will equal
a pro rated portion of such six-month amount, as accrued to the Redemption Date. Capitalized terms
used but not defined herein shall have the respective meanings ascribed to such terms in the
Indenture.
The Redemption Price will become due and payable on each Note to be redeemed on the Redemption Date
and, unless the Company defaults in making payment of the Redemption Price, interest on the Notes
will cease to accrue on and after the Redemption Date.
Payment of the Redemption Price and surrender of Notes for redemption will be made through the
facilities of The Depository Trust Company. Notes must be surrendered to the Trustee (acting as
Paying Agent) to collect the Redemption Price. Holders can inquire about the procedures for
redemption of the Notes by calling Kathryn Maxwell at The Bank of New York Trust Company, National
Association at (713) 483-6817.
In lieu of redemption, Notes may be converted at any time before 5:00 p.m., New York City time, on
the Redemption Date. A holder may convert fewer than all of such holders Notes so long as the
Notes converted are an integral multiple of $1,000 principal amount of Notes. Holders of Notes at
5:00 p.m., New York City time, on May 1, 2008, the regular record date for the May 15, 2008
interest payment on the Notes, will receive interest in the amount of $18.75 per $1,000 principal
amount of Notes payable on May 15, 2008. Notes surrendered for conversion by holders during the
period from 5:00 p.m., New York City time, on May 1, 2008 to 9:00 a.m., New York City time, on May
15, 2008 must be accompanied by a payment of $18.75 per $1,000 principal amount of Notes
surrendered for conversion, which amount equals the regular interest payment that the holder is to
receive on the Notes. Holders that submit Notes for conversion after 9:00 a.m., New York City
time, on May 15, 2008, need not submit any interest payment in connection with the conversion.
The current conversion rate of the Notes is 89.4381 shares of the Companys common stock per $1,000
principal amount of the Notes. With respect to the Old Notes, the Company will satisfy its
conversion obligation by delivering a number of shares of the Companys common stock per $1,000
principal amount of Old Notes being converted equal to the conversion rate in effect on the date on
which the holder satisfies the conversion requirements of the Indenture. With respect to the New
Notes, the Company will satisfy its conversion obligation by paying an amount in cash equal to the
lesser of the aggregate principal amount of New Notes being converted
and the Companys conversion
obligation with respect to such New Notes, and by delivering shares of the Companys common stock
to the extent that such conversion obligation exceeds the aggregate principal amount of New Notes
being converted (the Excess Value). The Companys conversion obligation with respect to the New
Notes will equal the product of:
|
|
|
(x) the aggregate principal amount of New Notes to be converted by a holder divided by
1,000 multiplied by (y) the conversion rate in effect on the later of (i) the date on which
the Ten-Day Average Price (as defined below) can be determined or (ii) the date on which
the holder satisfies the conversion requirements of the Indenture (including the delivery
of a conversion notice to The Depository Trust Company); and |
|
|
|
|
the average of the Last Reported Sale Prices of the Companys common stock for the
ten-trading-day period commencing on the second trading day following the date the holder
submits the Notes for conversion (the Ten-Day Average Price). |
With respect to the New Notes, the number of shares of the Companys common stock to be delivered,
if any, will be equal to the Excess Value divided by the Ten-Day Average Price.
With respect to the Old Notes, if a holder submits all or a portion of its Notes for conversion and
complies with the requirements of the Indenture, the Company will settle its conversion obligation
through the Trustee on or prior to the fifth Business Day following the date on which the holder
satisfies the conversion requirements of the Indenture. With respect to the New Notes, if a holder
submits all or a portion of its Notes for conversion and complies with the requirements of the
Indenture, the Company will settle its conversion obligation through the Trustee on or prior to the
fifth Business Day following the later of (i) the date on which the Ten-Day Average Price can be
determined or (ii) the date on which the holder satisfies the conversion requirements of the
Indenture. With respect to the Notes, the Company will deliver cash in lieu of any fractional
shares.
Holders who wish to convert their Notes must comply with the procedures in Paragraph 10 of the
Notes.
The Trustee serves as the Paying Agent and Conversion Agent under the Indenture with respect to the
Notes. The address of the Trustee is as follows:
|
|
|
|
|
|
|
|
|
Mail: |
|
Express Delivery: |
|
Hand Delivery: |
|
|
The Bank of New York Trust
|
|
The Bank of New York Trust
|
|
The Bank of New York Trust |
|
|
Company, N.A.
|
|
Company, N.A.
|
|
Company, N.A. |
|
|
Global Corporate Trust
|
|
Global Corporate Trust
|
|
101 Barclay Street, 1st Floor |
|
|
P.O. Box 2320
|
|
2001 Bryan Street, 9th Floor
|
|
New York, NY 10286 |
|
|
Dallas, TX 75221-2320
|
|
Dallas, TX 75201 |
|
|
IMPORTANT TAX INFORMATION
Please read this carefully
Under United States federal income tax law a withholding of 28% from reportable payments made to
certain holders of Notes may be required unless the holder furnishes a properly completed Form W-9
or otherwise establishes an exemption from backup withholding.
* |
|
These CUSIP Numbers have been assigned to this issue by the CUSIP Service Bureau and are
included solely for the convenience of the holders of the Notes. Neither the Company nor the
Trustee shall be responsible for the selection or use of these CUSIP Numbers, nor is any
representation made as to their correctness on the Notes or as indicated in this notice. |
|
|
|
|
|
Dated: April 16, 2008
|
|
THE BANK OF NEW YORK TRUST
COMPANY, NATIONAL ASSOCIATION, TRUSTEE,
on behalf of CenterPoint Energy, Inc.
|
|
|
|
|
|
|
|
|
|
|
|