Filed Pursuant to Rule 433
Registration No. 333-193695-02
August 8, 2016
PRICING TERM SHEET
(to Preliminary Prospectus Supplement dated August 8, 2016)
| Issuer: | CenterPoint Energy Houston Electric, LLC | |
| Security: | 2.40% General Mortgage Bonds, Series Z, due 2026 | |
| Legal Format: | SEC Registered | |
| Anticipated Ratings*: | A1/A/A (Moody’s/S&P/Fitch) | |
| Size: | $300,000,000 | |
| Trade Date: | August 8, 2016 | |
| Expected Settlement Date: | August 11, 2016 | |
| Maturity Date: | September 1, 2026 | |
| Interest Payment Dates: | March 1 and September 1, commencing March 1, 2017 | |
| Coupon: | 2.40% | |
| Price to Public: | 99.884% | |
| Benchmark Treasury: | 1.625% due May 15, 2026 | |
| Benchmark Treasury Yield: | 1.583% | |
| Spread to Benchmark Treasury: | +83 basis points | |
| Re-offer Yield: | 2.413% | |
| Optional Redemption: | Prior to June 1, 2026, greater of 100% or make-whole at a discount rate of Treasury plus 15 basis points (calculated to June 1, 2026); and on or after June 1, 2026, 100% plus, in either case, accrued and unpaid interest. | |
| CUSIP: | 15189X AQ1 | |
| Joint Book-Running Managers: | Deutsche Bank Securities Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated RBC Capital Markets, LLC | |
| Senior Co-Managers: | BNY Mellon Capital Markets, LLC Comerica Securities, Inc. | |
| Co-Managers: | Loop Capital Markets LLC Mischler Financial Group, Inc. | |
*Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Merrill Lynch, Pierce, Fenner & Smith Incorporated toll free at 1-800-294-1322, Deutsche Bank Securities Inc. toll free at 1-800-503-4611 or RBC Capital Markets, LLC toll free at 1-866-375-6829.