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Form 10-D

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-D

 

 

ASSET-BACKED ISSUER

DISTRIBUTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the initial distribution period from

January 19, 2012 to October 15, 2012

Commission File Number of issuing entity: 333-177662-01

CENTERPOINT ENERGY TRANSITION BOND
COMPANY IV, LLC

(Exact name of issuing entity as specified in its charter)

 

 

Commission File Number of depositor: 1-3187

CENTERPOINT ENERGY HOUSTON
ELECTRIC, LLC

(Exact name of depositor and sponsor as specified in its charter)

 

 

Delaware

(State or other jurisdiction of incorporation or organization of the issuing entity)

45-3687039

(I.R.S. Employer Identification No.)

 

1111 Louisiana

Suite 4664B

Houston, Texas

   77002
(Address of principal executive offices of the issuing entity)   (Zip Code)

(713) 207-5776

(Issuing entity’s telephone number, including area code)

Registered/reporting pursuant to (check one)

 

Title of Class

  

Section 12(b)

  

Section 12(g)

  

Section 15(d)

  

Name of exchange
(If Section 12(b))

2012 Senior Secured Transition Bonds, Tranche A-1

       x  

2012 Senior Secured Transition Bonds, Tranche A-2

       x  

2012 Senior Secured Transition Bonds, Tranche A-3

       x  

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x    No   ¨

 

 

 

PART I—DISTRIBUTION INFORMATION

Item 1. Distribution and Pool Performance Information.

The response to Item 1 is set forth in part herein and in part in Exhibit 99.1.

The record date for distributions (i.e., the interest and scheduled principal payments) described in Exhibit 99.1 is October 12, 2012.

Introductory and explanatory information regarding the material terms, parties and distributions described in Exhibit 99.1 is included in the Prospectus Supplement relating to the 2012 Senior Secured Transition Bonds (the “2012 Transition Bonds”), dated January 11, 2012, and related Prospectus, dated January 3, 2012, of CenterPoint Energy Transition Bond Company IV, LLC (the “Issuing Entity”) filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b)(2) of the Securities Act of 1933, as amended, on January 12, 2012.

As indicated in Exhibit 99.1, all required interest and scheduled principal payments on the 2012 Transition Bonds have been made with respect to the October 15, 2012 distribution date.

PART II—OTHER INFORMATION

Item 2. Legal Proceedings.

None.

Item 3. Sales of Securities and Use of Proceeds.

The Issuing Entity’s registration statement on Form S-3 relating to the 2012 Transition Bonds, as amended (the “Registration Statement”), Registration Nos. 333-177662 and 333-177662-01, was declared effective by the SEC on January 3, 2012. The aggregate amount of the 2012 Transition Bonds offered and sold under the Registration Statement was $1,695,000,000.

The 2012 Transition Bonds are the only securities offered and sold to date under the Registration Statement. The underwriters purchased the 2012 Transition Bonds for approximately $1.688 billion. The proceeds to the Issuing Entity, net of expenses, were approximately $1.684 billion. The following sets forth additional information regarding the 2012 Transition Bonds offering:

 

Tranche    Initial Principal Amount  

A-1

    $ 606,222,000   

A-2

    $ 407,516,000   

A-3

    $ 681,262,000   

The Issuing Entity used the proceeds from the sale of the 2012 Transition Bonds to purchase the transition property relating to the 2012 Transition Bonds from CenterPoint Energy Houston Electric, LLC, as described in the Registration Statement.

On October 21, 2011, the Issuing Entity issued 1,000 Common Shares, being all of the membership interests in the Issuing Entity, to CenterPoint Energy Houston Electric, LLC in a private placement in reliance on Section 4(2) of the Securities Act of 1933, as amended. A capital contribution of $1,000 was paid for the Common Shares. The proceeds of the private placement were deposited in the general funds account of the Issuing Entity.

Item 4. Defaults Upon Senior Securities.

Omitted pursuant to General Instruction C of Form 10-D.

Item 5. Submission of Matters to a Vote of Security Holders.

Omitted pursuant to General Instruction C of Form 10-D.

Item 6. Significant Obligors of Pool Assets.

Omitted pursuant to General Instruction C of Form 10-D.

Item 7. Significant Enhancement Provider Information.

Omitted pursuant to General Instruction C of Form 10-D.

Item 8. Other Information.

Omitted pursuant to General Instruction C of Form 10-D.

Item 9. Exhibits.

 

(a) Documents filed as a part of this report (exhibits marked with an asterisk are filed herewith):

 

  *99.1 Semi-annual Servicer’s Certificate relating to the 2012 Transition Bonds, dated October 11, 2012.

 

(b) Exhibits required by this Form and Item 601 of Regulation S-K (exhibits marked with an asterisk are filed herewith):

 

  3.1 Certificate of Formation of the Issuing Entity filed with the Delaware Secretary of State on October 14, 2011 (incorporated by reference to exhibit 3.3 included as an exhibit to the Issuing Entity’s Registration Statement on Form S-3 (Registration Nos. 333-177662 and 333-177662-01) filed with the SEC on November 2, 2011).

 

  3.2 Amended and Restated Limited Liability Company Agreement of the Issuing Entity dated as of January 19, 2012 (incorporated by reference to exhibit 3.1 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

 

  4.1 Indenture dated as of January 19, 2012 by and between the Issuing Entity and Deutsche Bank Trust Company Americas, as Trustee (incorporated by reference to exhibit 4.1 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

 

  4.2 First Supplemental Indenture dated as of January 19, 2012 by and between the Issuing Entity and Deutsche Bank Trust Company Americas, as Trustee, providing for the issuance of the 2012 Transition Bonds (incorporated by reference to exhibit 4.2 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

  4.3 Form of the 2012 Transition Bonds (included as Exhibit A to the First Supplemental Indenture filed as Exhibit 4.2) (incorporated by reference to exhibit 4.3 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

 

  10.1 Transition Property Sale Agreement dated as of January 19, 2012 by and between the Issuing Entity and CenterPoint Energy Houston Electric, LLC, as seller (incorporated by reference to exhibit 10.1 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

 

  10.2 Transition Property Servicing Agreement dated as of January 19, 2012 by and between the Issuing Entity and CenterPoint Energy Houston Electric, LLC, as servicer (incorporated by reference to exhibit 10.2 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

 

  10.3 Administration Agreement dated as of January 19, 2012 by and between the Issuing Entity and CenterPoint Energy Houston Electric, LLC, as administrator (incorporated by reference to exhibit 10.3 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

 

  10.4 Intercreditor Agreement dated as of January 19, 2012 by and among the Issuing Entity, CenterPoint Energy Houston Electric, LLC, Deutsche Bank Trust Company Americas and various other parties named therein (incorporated by reference to exhibit 10.4 included as an exhibit to the Issuing Entity’s Current Report on Form 8-K (File No. 333-177662-01) filed with the SEC on January 18, 2012).

 

  *99.1 Semi-annual Servicer’s Certificate relating to the 2012 Transition Bonds, dated October 11, 2012.

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 thereunto duly authorized.

 

CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
(Depositor)
By:  

/s/ Marc Kilbride

  Name: Marc Kilbride
  Title: Vice President and Treasurer

Date: October 29, 2012

EXHIBIT INDEX

 

99.1 Semi-annual Servicer’s Certificate relating to the 2012 Transition Bonds, dated October 11, 2012.
Semi-annual Servicer's Certificate relating to the 2012 Transition Bonds

Exhibit 99.1

Semiannual Servicer’s Certificate

CenterPoint Energy Transition Bond Company IV, LLC

$1,695,000,000 2012 Senior Secured Transition Bonds

Pursuant to Section 6.13 of the Transition Property Servicing Agreement (the “Agreement”), dated as of January 19, 2012, between

CenterPoint Energy Houston Electric, LLC, as Servicer, and CenterPoint Energy Transition Bond Company IV, 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: February 2, 2012 through October 11, 2012

Payment Date: October 15, 2012

Today’s Date: October 11, 2012

 

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

        
   i.    Remittances for the February 2 through 29, 2012 Collection Period      429,109.19        
   ii.    Remittances for the March 1 through 31, 2012 Collection Period      6,891,409.02        
   iii.    Remittances for the April 1 through 30, 2012 Collection Period      10,086,498.19        
   iv.    Remittances for the May 1 through 31, 2012 Collection Period      12,448,985.25        
   v.    Remittances for the June 1 through 30, 2012 Collection Period      12,411,824.73        
   vi.    Remittances for the July 1 through 31, 2012 Collection Period      14,803,253.06        
   vii.    Remittances for the August 1 through 31, 2012 Collection Period      16,175,006.37        
   viii.    Remittances for the September 1 through 30, 2012 Collection Period      15,135,786.10        
   ix.    Remittances for the October 1 through 11, 2012 Collection Period      6,980,630.87        
   x.    Net Earnings on General Subaccount      28,906.17        [1/19/12 through 9/30/12]   
        

 

 

       
   xi.    General Subaccount Balance (sum of i through x above)      95,391,408.95        
        

 

 

       
   xii.    Excess Funds Subaccount Balance as of Current Payment Date      0.00        [as of 9/30/12]   
   xiii.    Capital Subaccount Balance as of Current Payment Date (1)      8,482,387.41        [as of 9/30/12]   
        

 

 

       
   xiv.    Collection Account Balance (sum of xi through xiii above)      103,873,796.36        
        

 

 

       

(1)    Including current period earnings of $7,387.41

        

2. Outstanding Amounts as of Closing Date:

        
   i.    Tranche A-1 Principal Balance      606,222,000.00        
   ii.    Tranche A-2 Principal Balance      407,516,000.00        
   iii    Tranche A-3 Principal Balance      681,262,000.00        
        

 

 

       
   iv.    Aggregate Principal Balance of all Series 2012 Transition Bonds      1,695,000,000.00        
        

 

 

       

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

        
         

Principal

    Projected
Principal
Balance		     Semiannual
Principal Due		         
   i.    Tranche A-1      543,768,877.00        62,453,123.00      
   ii.    Tranche A-2      407,516,000.00        0.00      
   iii.    Tranche A-3      681,262,000.00        0.00      
        

 

 

    

 

 

     
   iv.    For all Series 2012 Transition Bonds      1,632,546,877.00        62,453,123.00      
        

 

 

    

 

 

     
               System
Restoration
Bond
Interest Rate		     Days in
Interest
Period (1)		      Interest Due  
   v.    Required Tranche A-1 Interest      0.9012 %      266         4,036,751.47   
   vi.    Required Tranche A-1 Interest      2.1606 %      266         6,505,762.01   
   vii.    Required Tranche A-2 Interest      3.0282 %      266         15,243,259.96   

(1)    On 30/360 Day basis.

        

              Required Level
(Including Replenishment
of Amounts Previously
Withdrawn for 4.i.-4.viii.)		     Funding
Required		  
  viii.    Capital Subaccount      8,475,000.00        0.00   

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

     
  i.    Trustee Fees and Expenses      31,500.00     
  ii.    Servicing Fee      626,208.33 (1)   
  iii.    Administration Fee and Independent Manager Fee      77,388.89 (2)   
  iv.    Operating Expenses      21,200.00 (3)   
  v.    Semiannual Interest (including any past-due Semiannual Interest for prior periods)     
              Aggregate     Per 1,000
of Original
Principal Amount		  
     1. Tranche A-1 Interest Payment      4,036,751.47        6.66   
     2. Tranche A-2 Interest Payment      6,505,762.01        15.96   
     3. Tranche A-3 Interest Payment      15,243,259.96        22.38   
  vi.    Principal Due and Payable as a result of (A) Event of Default or (B) on Final Maturity Date     
              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   
  vii.    Principal Scheduled to be Paid on Current Payment Date     
              Aggregate     Per 1,000
of Original
Principal Amount		  
     1. Tranche A-1 Principal Payment      62,453,123.00        277.83   
     2. Tranche A-2 Principal Payment      0.00        0.00   
     3. Tranche A-3 Principal Payment      0.00        0.00   
  viii.    Operating Expenses not Paid under Clause (iv) above      0.00     
  ix.    Replenishment of Any Amounts Drawn from Capital Subaccount      0.00     
  x.    Amount Calculated at Servicer’sAuthorized Rate of Return on Equity on the Amount     
     Contributed to the Capital Subaccount in Excess of 0.5% of the Initial Outstanding     
     Principal Balance of the Bonds Released to Issuer      NA     
  xi.    Net Earnings in Capital Subaccount Relating to the Initial Contribution of 0.5% of the Initial Outstanding Principal Balance of the Bonds Released to Issuer      7,387.41     
  xii.    Deposit to Excess Funds Subaccount      6,396,215.29     
  xiii.    Released to Issuer upon Series Retirement: Collection Account      0.00     
       

 

 

    
  xiv.    Aggregate Remittances as of Current Payment Date      95,398,796.36     
       

 

 

    

 

(1) Servicing fee: $1,695,000,000 x .05% x 266/360 = $626,208.33
(2) Administration fee: $100,000 x 266/360 = $73,888.89 plus Independent Manager fee ($3,500.00)
(3) Reimbursement to Administrator for fees/expenses paid to independent auditors ($11,200.00) and rating agencies ($10,000.00)

5. Subaccount Release or Withdrawals as of Current Payment Date Pursuant to Section 8.02(d) of Indenture:

           
   i.   Capital Subaccount Release (available for 4.xi.)      7,387.41           
   ii.   Excess Funds Subaccount Withdrawal (available for 4.i. through 4.x.)      0.00           
   iii.   Capital Subaccount Withdrawal (available for 4.i. through 4.viii.)      0.00           
       

 

 

          
   iv.   Total Release or Withdrawals      7,387.41           
       

 

 

          

6. Outstanding Amounts and Collection Account Balance as of Current Payment Date
(after giving effect to payments to be made on such Payment Date):

           
   i.   Tranche A-1 Principal Balance      543,768,877.00           
   ii.   Tranche A-2 Principal Balance      407,516,000.00           
   iii.   Tranche A-3 Principal Balance      681,262,000.00           
       

 

 

          
   iv.   Aggregate Principal Balance for all Series 2012 Transition Bonds      1,632,546,877.00           
       

 

 

          
   v.   Excess Funds Subaccount Balance      6,396,215.29           
   vi.   Capital Subaccount Balance      8,475,000.00           
       

 

 

          
   vii.   Aggregate Collection Account Balance      14,871,215.29           
       

 

 

          

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           
     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           
   ii.   Semiannual Principal           
     1. Tranche A-1 Principal Payment      0.00           
     2. Tranche A-2 Principal Payment      0.00           
     3. Tranche A-3 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 11th day of October, 2012.

CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC, as Servicer
by:   /s/ Marc Kilbride
  Marc Kilbride
  Vice President and Treasurer