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8-K

 

 

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, 2018

 

 

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

Emerging Growth Company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 8.01 Other Events.

In connection with the August 1, 2018 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 $88,467,525 on the Bonds in Tranche A-5.

After giving effect to all payments made in connection with the August 1, 2018 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 the outstanding tranche of the Bonds is as follows:

 

Tranche

    

Outstanding

Principal Balance

    

Interest Rate

  
  A-5     $ 207,644,275       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  30, 2018, 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, 2018 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 1, 2018     By:  

/s/ Kristie L. Colvin

      Kristie L. Colvin
      Senior Vice President, Chief Accounting Officer and Manager
EX-99.1

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 31, 2018 through July 30, 2018

Payment Date: August 1, 2018

Today’s Date: July 30, 2018

 

                                                                                                        
1. Collections Allocable and Aggregate Amounts Available for Current Payment Date:  
   i.    Remittances for the January 31, 2018 Collection Period      575,831.36       
   ii.    Remittances for the February 1 through 28, 2018 Collection Period      14,718,738.11       
   iii.    Remittances for the March 1 through 31, 2018 Collection Period      14,375,520.91       
   iv.    Remittances for the April 1 through 30, 2018 Collection Period      13,455,543.80       
   v.    Remittances for the May 1 through 31, 2018 Collection Period      14,183,134.11       
   vi.    Remittances for the June 1 through 30, 2018 Collection Period      14,946,703.60       
   vii.    Remittances for the July 1 through 30, 2018 Collection Period      17,760,463.88       
   viii.    Net Earnings on Collection Account       
 [1/1/18 through
6/30/18]		  
 		   
      General Subaccount      366,191.91       
      Capital Subaccount      67,841.38       
      Excess Funds Subaccount      248,178.34       
        

 

 

       
   ix.    General Subaccount Balance (sum of i through viii above)      90,698,147.40       
        

 

 

       
             
   x.    Excess Funds Subaccount Balance as of Prior Payment Date      34,479,108.96       
   xi.    Capital Subaccount Balance as of Prior Payment Date (1)      9,255,000.00       
        

 

 

       
   xii.    Collection Account Balance (sum of ix through xi above)      134,432,256.36       
        

 

 

       
      (1) Net of unreleased earnings shown in 1.viii.        
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      0.00       
   v.    Tranche A-5 Principal Balance      296,111,800.00       
        

 

 

       
   vi.    Aggregate Principal Balance of all Series A Transition Bonds      296,111,800.00       
        

 

 

       
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      0.00       0.00     
   v.    Tranche A-5      207,644,275.00       88,467,525.00     
        

 

 

    

 

 

     
   vi.    For all Series A Transition Bonds      207,644,275.00       88,467,525.00     
        

 

 

    

 

 

     
               Transition
Bond
Interest Rate		     Days in
Interest
Period (2)		      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        0.00  
   xi.    Required Tranche A-5 Interest      5.302%       180        7,849,923.82  
      (2) 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   (3)      
   iii.    Administration Fee and Independent Managers Fee      50,000.00   (4)      
   iv.    Operating Expenses      108,783.93   (5)      
   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      0.00       0.00     
      5. Tranche A-5 Interest Payment      7,849,923.82       16.99     
   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      0.00        0.00     
      5. Tranche A-5 Principal Payment      88,467,525.00        191.49     
   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      -6,559,355.07        
   xii.    Released to Issuer upon Series Retirement: Collection Account      0.00        
        

 

 

        
   xiii.    Aggregate Remittances as of Current Payment Date      90,382,127.68        
        

 

 

        
     

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

         
     

(4)   Administration fee: $100,000 x 180/360 = $50,000.00

         
     

(5)   Reimbursement to Administrator for fees/expenses paid to outside legal counsel ($1,518.10), printer ($1,549.00), independent public accountant ($82,592.85), rating agency ($0.00) and L/C issuing bank ($23,123.98)

         
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.)      6,559,355.07        
   ii.    Capital Subaccount (available for 4.i. through 4.viii.)      0.00        
        

 

 

        
   iii.    Total Withdrawals      6,559,355.07        
        

 

 

        
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      0.00        
   v.    Tranche A-5 Principal Balance      207,644,275.00        
        

 

 

        
   vi.    Aggregate Principal Balance for all Series A Transition Bonds      207,644,275.00        
        

 

 

        
   vii.    Excess Funds Subaccount Balance      28,167,932.23        
   viii.    Capital Subaccount Balance      9,322,841.38        
        

 

 

        
   ix.    Aggregate Collection Account Balance      37,490,773.61        
        

 

 

        
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 30th day of July, 2018.
  CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC, as Servicer
by:  

/s/ Carla A. Kneipp

    Carla A. Kneipp  
    Vice President and Treasurer