CenterPoint Energy announced that it amended the three revolving bank credit facilities of the parent and its wholly-owned subsidiaries, CenterPoint Energy Houston Electric (CEHE) and CenterPoint Energy Resources (CERC).
The amendments and extensions of the three facilities were coordinated by J.P. Morgan Securities and Citigroup Global Markets, which together with RBS Securities, Merrill Lynch, Barclays Capital, Deutsche Bank Securities and Wells Fargo Securities also served as joint lead arrangers and joint bookrunners for the facilities.
JPMorgan Chase Bank serves as the administrative agent for CenterPoint Energy’s and CEHE’s facilities, and Citibank serves as the administrative agent for CERC’s facility.
The amendments extend the maturity date of each of the facilities from September 9, 2016, to September 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. 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.”
Houston-based CenterPoint Energy is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations.