CenterPoint Energy 2009 Annual Report Download - page 120
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98
The following table sets forth summarized financial information regarding CenterPoint Energy’s investment in
TW Securities and each component of CenterPoint Energy’s ZENS obligation (in millions).
TW
Securities
Debt
Component
of ZENS
Derivative
Component
of ZENS
Balance at Decembe
r
31, 2006.................... $ 471 $ 111 $ 372
Accretion of debt component of ZENS.....
—
20
—
2% interest pai
d
.........................................
—
(17)
—
Gain on indexed debt securities.................
—
—
(111)
Loss on TW Common ............................... (114)
—
—
Balance at Decembe
r
31, 2007.................... 357 114 261
Accretion of debt component of ZENS.....
—
20
—
2% interest pai
d
.........................................
—
(17)
—
Gain on indexed debt securities.................
—
—
(128)
Loss on TW Common ............................... (139)
—
—
Balance at Decembe
r
31, 2008.................... 218 117 133
Accretion of debt component of ZENS.....
—
21
—
2% interest pai
d
.........................................
—
(17)
—
Loss on indexed debt securities.................
—
—
68
Gain on TW Securities .............................. 82
—
—
Balance at Decembe
r
31, 2009.................... $ 300 $ 121 $ 201
(7) Equity
(a) Capital Stock
CenterPoint Energy has 1,020,000,000 authorized shares of capital stock, comprised of 1,000,000,000 shares of
$0.01 par value common stock and 20,000,000 shares of $0.01 par value cumulative preferred stock.
During the year ended December 31, 2009, CenterPoint Energy received net proceeds of approximately
$280 million from the issuance of 24.2 million common shares in an underwritten public offering, net proceeds of
$148 million from the issuance of 14.3 million common shares through a continuous offering program, proceeds of
approximately $57 million from the sale of approximately 4.9 million common shares to CenterPoint Energy’s
defined contribution plan and proceeds of approximately $15 million from the sale of approximately 1.3 million
common shares to participants in CenterPoint Energy’s enhanced dividend reinvestment plan.
(b) Shareholder Rights Plan
CenterPoint Energy has a Shareholder Rights Plan that states that each share of its common stock includes one
associated preference stock purchase right (Right) which entitles the registered holder to purchase from CenterPoint
Energy a unit consisting of one-thousandth of a share of Series A Preference Stock. The Rights, which expire on
December 11, 2011, are exercisable upon some events involving the acquisition of 20% or more of CenterPoint
Energy’s outstanding common stock. Upon the occurrence of such an event, each Right entitles the holder to receive
common stock with a current market price equal to two times the exercise price of the Right. At any time prior to
becoming exercisable, CenterPoint Energy may repurchase the Rights at a price of $0.005 per Right. There are
700,000 shares of Series A Preference Stock reserved for issuance upon exercise of the Rights.