Houston – September 10, 2013 - CenterPoint Energy, Inc. (NYSE: CNP) announced today that it amended the three revolving bank credit facilities of the parent and its wholly-owned subsidiaries, CenterPoint Energy Houston Electric, LLC (CEHE) and CenterPoint Energy Resources Corp. (CERC).
The amendments extend the maturity date of each of the facilities from Sept. 9, 2016, to Sept. 9, 2018. In addition, the debt-to-earnings before interest, taxes, depreciation and amortization financial covenant in the CenterPoint Energy facility has been replaced with a debt-to-capitalization financial covenant and the aggregate commitments under the CERC facility have been reduced from $950 million to $600 million. The aggregate commitments under the CenterPoint Energy and CEHE facilities remain at $1.2 billion and $300 million, respectively.
“I am pleased that we have been able to lock in the short-term liquidity provided by these facilities for the next five years, and gratified that each of the banks in our facilities has agreed to the amendments and extensions we sought,” said Gary L. Whitlock, executive vice president and chief financial officer of CenterPoint Energy. “These appropriately sized and competitively priced facilities allow the company to strengthen its liquidity and enhance its financial flexibility.”
Based on current credit ratings, the CenterPoint Energy and CERC facilities have a drawn cost of LIBOR plus 150 basis points, and the CEHE facility has a drawn cost of LIBOR plus 125 basis points.
These revolving credit facilities may be drawn on from time to time to provide funds used for general corporate purposes of the companies and to support commercial paper. The facilities may also be utilized to obtain letters of credit.
The amendments and extensions of the three facilities were coordinated by J.P. Morgan Securities LLC, and Citigroup Global Markets, Inc., which together with RBS Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC, also served as joint lead arrangers and joint bookrunners for the facilities. JPMorgan Chase Bank, N.A. serves as the administrative agent for CenterPoint Energy’s and CEHE’s facilities, and Citibank, N.A. serves as the administrative agent for CERC’s facility.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 58.3 percent limited partner interest in Enable Midstream Partners it jointly controls with OGE Energy Corp. with operations in major natural gas and liquids-rich producing areas of Oklahoma, Texas, Arkansas and Louisiana. With more than 8,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the website at www.CenterPointEnergy.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. The statements in this news release regarding future events and other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of the release.