Jul 02, 2007
CenterPoint Energy closes on amended credit facilities totaling $2.45 billion
CenterPoint Energy closes on amended credit facilities totaling $2.45 billion
CenterPoint Energy closes on amended credit facilities totaling $2.45 billionHouston - July 2, 2007 - CenterPoint Energy, Inc. (NYSE: CNP) announced that on Friday, June 29 it closed on three amended bank credit facilities totaling $2.45 billion for the parent and its wholly-owned subsidiaries, CenterPoint Energy Houston Electric, LLC (CEHE) and CenterPoint Energy Resources Corp. (CERC).
"I am pleased that we have been able to extend the maturity on all three facilities to 5 years and to increase the size of the CERC credit facility by $400 million. We were also able to achieve modest improvement in pricing, reflecting current terms in the syndicated loan market," said Gary L. Whitlock, executive vice president and chief financial officer of CenterPoint Energy. "We continue to take steps where we can to reduce borrowing costs, strengthen our liquidity and maintain financial flexibility."
The CenterPoint Energy amended credit facility is a five-year, $1.2 billion senior unsecured revolving credit facility. It has a first drawn cost of LIBOR plus 55 basis points at existing credit ratings, versus the previous rate of LIBOR plus 60 basis points.
The amended facility at CEHE, the company's electric transmission and distribution subsidiary, is a five-year, $300 million senior unsecured revolving credit facility. First drawn cost remains at LIBOR plus 45 basis points at existing credit ratings.
The amended facility at CERC, the company's natural gas distribution, pipelines and field services subsidiary, is a five-year, $950 million senior unsecured revolving credit facility versus a $550 million facility previously. First drawn cost remains at LIBOR plus 45 basis points.
These revolving credit facilities are drawn on from time to time to provide funds used for general corporate purposes of the companies, and they support commercial paper and can be utilized to obtain letters of credit.
The global coordinators for the three facilities are J.P. Morgan Securities Inc. and Citigroup Global Markets Inc., who also served as joint lead arrangers for the parent facility. Barclays Capital and Wachovia Bank, National Association served as joint lead arrangers for the CEHE facility. Citigroup Global Markets Inc., Banc of America Securities LLC and Deutsche Bank Securities Inc. served as joint lead arrangers for the CERC facility. JPMorgan Chase Bank, N.A. serves as the administrative agent for the parent and CEHE facilities, and Citibank, N.A. serves as the administrative agent for the CERC facility.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com. This news release includes forward-looking statements. Actual events and results may differ materially from those projected. You can generally identify forward-looking statements by the words "believe," "will," "expect" or other similar words. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in CenterPoint Energy's business plans, financial market conditions and other factors discussed in the Annual Reports on Form 10-K for the year ended December 31, 2006, and Quarterly Reports on Form 10-Q for the period ended March 31, 2007, filed with the Securities and Exchange Commission by CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp.
"I am pleased that we have been able to extend the maturity on all three facilities to 5 years and to increase the size of the CERC credit facility by $400 million. We were also able to achieve modest improvement in pricing, reflecting current terms in the syndicated loan market," said Gary L. Whitlock, executive vice president and chief financial officer of CenterPoint Energy. "We continue to take steps where we can to reduce borrowing costs, strengthen our liquidity and maintain financial flexibility."
The CenterPoint Energy amended credit facility is a five-year, $1.2 billion senior unsecured revolving credit facility. It has a first drawn cost of LIBOR plus 55 basis points at existing credit ratings, versus the previous rate of LIBOR plus 60 basis points.
The amended facility at CEHE, the company's electric transmission and distribution subsidiary, is a five-year, $300 million senior unsecured revolving credit facility. First drawn cost remains at LIBOR plus 45 basis points at existing credit ratings.
The amended facility at CERC, the company's natural gas distribution, pipelines and field services subsidiary, is a five-year, $950 million senior unsecured revolving credit facility versus a $550 million facility previously. First drawn cost remains at LIBOR plus 45 basis points.
These revolving credit facilities are drawn on from time to time to provide funds used for general corporate purposes of the companies, and they support commercial paper and can be utilized to obtain letters of credit.
The global coordinators for the three facilities are J.P. Morgan Securities Inc. and Citigroup Global Markets Inc., who also served as joint lead arrangers for the parent facility. Barclays Capital and Wachovia Bank, National Association served as joint lead arrangers for the CEHE facility. Citigroup Global Markets Inc., Banc of America Securities LLC and Deutsche Bank Securities Inc. served as joint lead arrangers for the CERC facility. JPMorgan Chase Bank, N.A. serves as the administrative agent for the parent and CEHE facilities, and Citibank, N.A. serves as the administrative agent for the CERC facility.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com. This news release includes forward-looking statements. Actual events and results may differ materially from those projected. You can generally identify forward-looking statements by the words "believe," "will," "expect" or other similar words. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in CenterPoint Energy's business plans, financial market conditions and other factors discussed in the Annual Reports on Form 10-K for the year ended December 31, 2006, and Quarterly Reports on Form 10-Q for the period ended March 31, 2007, filed with the Securities and Exchange Commission by CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp.