CenterPoint Energy, Inc. announced on October 20, 2026, that its wholly-owned subsidiary, Southern Indiana Gas and Electric Company (SIGECO), entered into a Bond Purchase Agreement. Under this agreement, SIGECO agreed to sell a total of $260 million in First Mortgage Bonds to institutional investors. The bonds are scheduled to be issued in three separate tranches over a nine-month period.
The first tranche, Series 2026A Bonds, consists of $130 million due in 2031. These bonds were issued on October 20, 2026, and carry an interest rate of 5.99% per annum, with interest payments beginning on April 15, 2027. The second tranche, Series 2026B Bonds, is valued at $80 million and is due in 2033. These bonds are set to be issued on December 15, 2026, with an interest rate of 6.15% and payments beginning on June 15, 2027. The final tranche, Series 2027A Bonds, is valued at $50 million and is due in 2037. These bonds are scheduled for issuance on February 25, 2027, with an interest rate of 6.33% and payments beginning on August 15, 2027.
The bonds are secured by a first mortgage lien on SIGECO’s assets and are issued under the Amended and Restated Mortgage Indenture, as further supplemented by the Seventh, Eighth, and Ninth Supplemental Indentures. The proceeds from the bond sale will be used for general corporate purposes, including repaying short-term debt, refunding long-term debt at maturity, and funding capital expenditures. Until the net proceeds are deployed, SIGECO may temporarily invest them in interest-bearing obligations, including the company’s money pool.
The bonds are not registered under the Securities Act of 1933 and will be subject to transfer restrictions, meaning they can only be sold in transactions exempt from registration requirements. The indenture governing the bonds allows for prepayment of the bonds at any time, subject to a minimum 10% partial prepayment requirement and a make-whole amount calculation.
