Apr 03, 2006
CenterPoint Energy announces improved credit facilities reflecting significantly better credit metrics
CenterPoint Energy announces improved credit facilities reflecting significantly better credit metrics
CenterPoint Energy announces improved credit facilities reflecting significantly better credit metricsHOUSTON, April 3, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- CenterPoint Energy, Inc. (NYSE: CNP) announced that on Friday, March 31, it successfully closed on three new bank credit facilities totaling $2.05 billion for the parent and its wholly-owned subsidiaries, CenterPoint Energy Houston Electric, LLC (CEHE) and CenterPoint Energy Resources Corp. (CERC).
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"I am extremely pleased with the rates, tenor and terms of these facilities, which are consistent with our financing strategy of reducing borrowing costs, strengthening our liquidity and providing financial flexibility for the company and its subsidiaries," said Gary L. Whitlock, executive vice president and chief financial officer of CenterPoint Energy. "We believe the terms of these new facilities not only reflect the significant improvement we have achieved in our credit metrics over the last several years, but also the excellent relationships we have with our banks."
The first credit facility at CenterPoint Energy is a five-year, $1.2 billion senior unsecured revolving credit facility that replaced a $1 billion, five-year facility established in March 2005. The new credit facility has a first drawn cost of LIBOR plus 60 basis points at existing credit ratings, versus LIBOR plus 87.5 basis points for the facility it replaced.
The second facility at CEHE, the company's electric transmission and distribution subsidiary, is a five-year, $300 million senior unsecured revolving credit facility that replaced a $200 million, five-year facility established in March 2005. The new credit facility has a first drawn cost of LIBOR plus 45 basis points at existing credit ratings, versus LIBOR plus 75 basis points for the facility it replaced.
The third facility at CERC, the company's natural gas distribution, pipelines and field services subsidiary, is a five-year, $550 million senior unsecured revolving credit facility that replaced a $400 million, five-year facility established in June 2005. The new credit facility has a first drawn cost of LIBOR plus 45 basis points at existing credit ratings, versus LIBOR plus 55 basis points for the facility it replaced.
The proceeds from these facilities will be used for general corporate purposes.
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. J.P. Morgan 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 and distribution, natural gas distribution and sales, interstate pipeline and gathering operations. The company serves more than five million metered customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total approximately $17 billion. With about 9,000 employees, CenterPoint Energy and its predecessor companies have been in the business for more than 130 years. For more information, visit the Web site at http://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, 2005, filed with the Securities and Exchange Commission by CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp.
SOURCE CenterPoint Energy, Inc.
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"I am extremely pleased with the rates, tenor and terms of these facilities, which are consistent with our financing strategy of reducing borrowing costs, strengthening our liquidity and providing financial flexibility for the company and its subsidiaries," said Gary L. Whitlock, executive vice president and chief financial officer of CenterPoint Energy. "We believe the terms of these new facilities not only reflect the significant improvement we have achieved in our credit metrics over the last several years, but also the excellent relationships we have with our banks."
The first credit facility at CenterPoint Energy is a five-year, $1.2 billion senior unsecured revolving credit facility that replaced a $1 billion, five-year facility established in March 2005. The new credit facility has a first drawn cost of LIBOR plus 60 basis points at existing credit ratings, versus LIBOR plus 87.5 basis points for the facility it replaced.
The second facility at CEHE, the company's electric transmission and distribution subsidiary, is a five-year, $300 million senior unsecured revolving credit facility that replaced a $200 million, five-year facility established in March 2005. The new credit facility has a first drawn cost of LIBOR plus 45 basis points at existing credit ratings, versus LIBOR plus 75 basis points for the facility it replaced.
The third facility at CERC, the company's natural gas distribution, pipelines and field services subsidiary, is a five-year, $550 million senior unsecured revolving credit facility that replaced a $400 million, five-year facility established in June 2005. The new credit facility has a first drawn cost of LIBOR plus 45 basis points at existing credit ratings, versus LIBOR plus 55 basis points for the facility it replaced.
The proceeds from these facilities will be used for general corporate purposes.
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. J.P. Morgan 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 and distribution, natural gas distribution and sales, interstate pipeline and gathering operations. The company serves more than five million metered customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total approximately $17 billion. With about 9,000 employees, CenterPoint Energy and its predecessor companies have been in the business for more than 130 years. For more information, visit the Web site at http://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, 2005, filed with the Securities and Exchange Commission by CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp.
SOURCE CenterPoint Energy, Inc.
media, Leticia Lowe, +1-713-207-7702, or investors, Marianne Paulsen, +1-713-207-6500, both of CenterPoint Energy, Inc.
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