CenterPoint Energy's stock price drops following the issuance of $550 million convertible bonds

Investing.com – CenterPoint Energy (NYSE:CNP) stock fell 2.7% to $41.85 in pre-market trading on Monday, after the utility company announced plans to raise funds through a convertible bond issuance.

The Houston, Texas-based company stated it will issue $550 million in convertible bonds due May 2029 through a private placement. CenterPoint Energy plans to use the net proceeds from this issuance for general corporate purposes, including repaying commercial paper and other debt.

Prior to this financing, CenterPoint Energy’s stock rose 0.8 on Friday, closing at a record high of $43, bringing the company’s market capitalization to approximately $28 billion.

Earlier last week, CenterPoint Energy announced fourth-quarter profit growth and raised its 10-year capital plan amid ongoing increases in electricity demand.

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