CenterPoint Energy, Inc.
CenterPoint Energy Transition Bond CO II, LLC (Form: 8-K, Received: 08/02/2016 16:33:02)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2016

 

 

CENTERPOINT ENERGY TRANSITION BOND COMPANY II, LLC

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   333-121505   59-3790472

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(IRS Employer

Identification No.)

 

1111 Louisiana, Suite 4655B

Houston, Texas

  77002
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (713) 207-5222

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 8.01 Other Events.

In connection with the August 1, 2016 payment date for its Senior Secured Transition Bonds, Series A (the “Bonds”), CenterPoint Energy Transition Bond Company II, LLC (the “Company”) paid all interest then due on the Bonds and the scheduled principal payment of $76,030,242 on the Bonds in Tranche A-4.

After giving effect to all payments made in connection with the August 1, 2016 payment date, the Capital Subaccount had a balance of approximately $9.3 million, which is the targeted level of the Capital Subaccount, and the Excess Funds Subaccount had a balance of approximately $28.2 million.

After giving effect to the principal payment set forth above, the outstanding principal balance and the interest rate for each outstanding tranche of the Bonds are as follows:

 

Tranche

 

Outstanding

Principal Balance

 

Interest Rate

A-4

  $    121,240,531   5.170%

A-5

  $    462,000,000   5.302%

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The Company has included as Exhibit 99.1 to this Current Report on Form 8-K the Semiannual Servicer’s Certificate, dated July 28, 2016, transmitted by CenterPoint Energy Houston Electric, LLC, the servicer of the Bonds, to Deutsche Bank Trust Company Americas, the Paying Agent for the Bonds, in connection with the August 1, 2016 payment date for the Bonds. The information on this Exhibit is hereby incorporated by reference into this Current Report on Form 8-K.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CENTERPOINT ENERGY TRANSITION BOND COMPANY II,

LLC

Date: August 2, 2016   By:   /s/ Kristie L. Colvin
    Kristie L. Colvin
    Senior Vice President, Chief Accounting Officer and Manager


EXHIBIT INDEX

 

EXHIBIT

NUMBER

  

EXHIBIT DESCRIPTION

99.1    Semiannual Servicer’s Certificate dated as of July 28, 2016, as to the transition bond balances, the balances of the collection account and its sub-accounts, and setting forth transfers and payments to the made on the August 1, 2016 payment date.

Exhibit 99.1

Semiannual Servicer’s Certificate

CenterPoint Energy Transition Bond Company II, LLC

$1,851,000,000 Series A Transition Bonds

Pursuant to Section 6 of Annex 1 to the Transition Property Servicing Agreement (the "Agreement"), dated as of December 16, 2005, between

CenterPoint Energy Houston Electric, LLC, as Servicer, and CenterPoint Energy Transition Bond Company II, LLC, as Issuer,

the Servicer does hereby certify as follows:

Capitalized terms used in this Semiannual Servicer’s Certificate have their respective meanings as

set forth in the Agreement. References herein to certain sections and subsections are references

to the respective sections and subsections of the Agreement.

Collection Periods: January 29, 2016 through July 28, 2016

Payment Date: August 1, 2016

Today's Date: July 28, 2016

 

1. Collections Allocable and Aggregate Amounts Available for Current Payment Date:

      
         i.      Remittances for the January 30, 2016 Collection Period      370,111.32       
         ii.      Remittances for the February 1 through 29, 2016 Collection Period      13,723,838.36       
         iii.      Remittances for the March 1 through 31, 2016 Collection Period      15,754,900.54       
         iv.      Remittances for the April 1 through 30, 2016 Collection Period      12,417,015.25       
         v.      Remittances for the May 1 through 31, 2016 Collection Period      13,523,532.03       
         vi.      Remittances for the June 1 through 30, 2016 Collection Period      15,741,109.47       
         vii.      Remittances for the July 1 through 28, 2016 Collection Period      16,773,895.19       
         viii.      Net Earnings on Collection Account        [1/1/16 through 6/30/16]     
         General Subaccount      90,371.78       
         Capital Subaccount      18,236.92       
         Excess Funds Subaccount      63,887.63       
       

 

 

     
         ix.      General Subaccount Balance (sum of i through viii above)      88,476,898.49       
       

 

 

     
         x.      Excess Funds Subaccount Balance as of Prior Payment Date      33,711,979.50       
         xi.      Capital Subaccount Balance as of Prior Payment Date      9,255,000.00       
       

 

 

     
         xii.      Collection Account Balance (sum of ix through xi above)      131,443,877.99       
       

 

 

     

2. Outstanding Amounts as of Prior Payment Date:

      
         i.      Tranche A-1 Principal Balance      0.00       
         ii.      Tranche A-2 Principal Balance      0.00       
         iii.      Tranche A-3 Principal Balance      0.00       
         iv.      Tranche A-4 Principal Balance      197,270,773.00       
         v.      Tranche A-5 Principal Balance      462,000,000.00       
       

 

 

     
         vi.      Aggregate Principal Balance of all Series A Transition Bonds      659,270,773.00       
       

 

 

     

3. Required Funding/Payments as of Current Payment Date:

      
          

Series A Principal

  

Projected
Principal
Balance

   

Semiannual

Principal Due

       
         i.      Tranche A-1      0.00        0.00     
         ii.      Tranche A-2      0.00        0.00     
         iii.      Tranche A-3      0.00        0.00     
         iv.      Tranche A-4      121,240,531.00        76,030,242.00     
         v.      Tranche A-5      462,000,000.00        0.00     
       

 

 

   

 

 

   
         vi.      For all Series A Transition Bonds      583,240,531.00        76,030,242.00     
       

 

 

   

 

 

   
               

Transition
Bond

Interest Rate

   

Days in

Interest

Period (1)

   

Interest Due

 
         vii.      Required Tranche A-1 Interest      4.840     180        0.00   
         viii.      Required Tranche A-2 Interest      4.970     180        0.00   
         ix.      Required Tranche A-3 Interest      5.090     180        0.00   
         x.      Required Tranche A-4 Interest      5.170     180        5,099,449.48   
         xi.      Required Tranche A-5 Interest      5.302     180        12,247,620.00   
     (1) On 30/360 Day basis.       


               

Required Level

   

Funding
Required

        
         xii.      Capital Subaccount      9,255,000.00        0.00      

4. Allocation of Remittances as of Current Payment Date Pursuant to Section 8.02(d) of Indenture:

       
         i.      Trustee Fees and Expenses      2,500.00        
         ii.      Servicing Fee      462,750.00 (1)      
         iii.      Administration Fee and Independent Managers Fee      52,500.00 (2)      
         iv.      Operating Expenses      76,547.63 (3)      
         v.      Semiannual Interest (including any past-due Semiannual Interest for prior periods)        
          

Series A

  

Aggregate

   

Per 1,000
of Original
Principal Amount

        
     1. Tranche A-1 Interest Payment      0.00        0.00      
     2. Tranche A-2 Interest Payment      0.00        0.00      
     3. Tranche A-3 Interest Payment      0.00        0.00      
     4. Tranche A-4 Interest Payment      5,099,449.48        9.83      
     5. Tranche A-5 Interest Payment      12,247,620.00        26.51      
         vi.      Principal Due and Payable as a result of (A) Event of Default or (B) on Final Maturity Date        
          

Series A

  

Aggregate

   

Per 1,000

of Original
Principal Amount

        
     1. Tranche A-1 Principal Payment      0.00        0.00      
     2. Tranche A-2 Principal Payment      0.00        0.00      
     3. Tranche A-3 Principal Payment      0.00        0.00      
     4. Tranche A-4 Principal Payment      0.00        0.00      
     5. Tranche A-5 Principal Payment      0.00        0.00      
     (C) Principal Scheduled to be Paid on Current Payment Date        
          

Series A

  

Aggregate

   

Per 1,000

of Original
Principal Amount

        
     1. Tranche A-1 Principal Payment      0.00        0.00      
     2. Tranche A-2 Principal Payment      0.00        0.00      
     3. Tranche A-3 Principal Payment      0.00        0.00      
     4. Tranche A-4 Principal Payment      76,030,242.00        146.49      
     5. Tranche A-5 Principal Payment      0.00        0.00      
         vii.      Amounts Payable to Credit Enhancement Providers (if applicable)      N/A        
         viii.      Operating Expenses not Paid under Clause (iv) above      0.00        
         ix.      Funding of Capital Subaccount      0.00        
         x.      Net Earnings in Capital Subaccount Released to Issuer      0.00        
         xi.      Deposit to Excess Funds Subaccount      -5,494,710.62        
         xii.      Released to Issuer upon Series Retirement: Collection Account      0.00        
       

 

 

      
         xiii.      Aggregate Remittances as of Current Payment Date      88,476,898.49        
       

 

 

      
    

(1)  Servicing fee: $1,851,000,000 x 0.05% x 180/360 = $462,750.00

       
    

(2)  Administration fee: $100,000 x 180/360 = $50,000.00; Independent Managers fee: $2,500.00

       
    

(3)  Reimbursement to Administrator for fees/expenses paid to outside legal counsel ($2,243.70), printer ($1,335.00),

       independent public accountant ($47,891.11), rating agency ($10,000) and L/C issuing bank ($15,077.82)

     

         

    


5. Subaccount Withdrawals as of Current Payment Date

    (if applicable, pursuant to Section 8.02(d) of Indenture):

        
         i.      Excess Funds Subaccount (available for 4.i. through 4.ix.)      5,494,710.62         
         ii.      Capital Subaccount (available for 4.i. through 4.viii.)      0.00         
       

 

 

       
         iii.      Total Withdrawals      5,494,710.62         
       

 

 

       

6. Outstanding Amounts and Collection Account Balance as of Current Payment Date

(after giving effect to payments to be made on such Payment Date):

        
          

Series A

                    
         i.      Tranche A-1 Principal Balance      0.00         
         ii.      Tranche A-2 Principal Balance      0.00         
         iii.      Tranche A-3 Principal Balance      0.00         
         iv.      Tranche A-4 Principal Balance      121,240,531.00         
         v.      Tranche A-5 Principal Balance      462,000,000.00         
       

 

 

       
         vi.      Aggregate Principal Balance for all Series A Transition Bonds      583,240,531.00         
       

 

 

       
         vii.      Excess Funds Subaccount Balance      28,217,268.88         
         viii.      Capital Subaccount Balance      9,273,236.92         
       

 

 

       
         ix.      Aggregate Collection Account Balance      37,490,505.80         
       

 

 

       

7. Shortfalls In Interest and Principal Payments as of Current Payment Date

(after giving effect to payments to be made on such Payment Date):

        
         i.      Semiannual Interest         
          

Series A

                    
     1. Tranche A-1 Bond Interest Payment      0.00         
     2. Tranche A-2 Bond Interest Payment      0.00         
     3. Tranche A-3 Bond Interest Payment      0.00         
     4. Tranche A-4 Bond Interest Payment      0.00         
     5. Tranche A-5 Bond Interest Payment      0.00         
         ii.      Semiannual Principal         
          

Series A

                    
     1. Tranche A-1 Principal Payment      0.00         
     2. Tranche A-2 Principal Payment      0.00         
     3. Tranche A-3 Principal Payment      0.00         
     4. Tranche A-4 Principal Payment      0.00         
     5. Tranche A-5 Principal Payment      0.00         

8. Shortfall in Required Subaccount Level as of Current Payment Date

(after giving effect to payments to be made on such Payment Date):

        
         i.      Capital Subaccount      0.00         

    IN WITNESS HEREOF, the undersigned has duly executed and delivered this

    Semiannual Servicer's Certificate this 28th day of July, 2016.

    CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC, as Servicer

by: /s/ Robert B. McRae                                                                                                              

    Robert B. McRae

    Assistant Treasurer