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| CNP > SEC Filings for CNP > Form 8-K on 1-Dec-2008 | All Recent SEC Filings |
1-Dec-2008
Creation of a Direct Financial Obligation or an Obligation under an Off-Ba
On November 25, 2008, CenterPoint Energy Houston Electric, LLC ("CEHE"), a
wholly owned subsidiary of CenterPoint Energy, Inc. (the "Company"), entered
into a $600 million 364-day credit facility. The credit facility will terminate
when bonds are issued to securitize the costs incurred as a result of Hurricane
Ike if those bonds are issued prior to the scheduled expiration of the facility,
November 24, 2009. CEHE expects to seek legislative and regulatory approval for
the issuance of such bonds during 2009.
The credit facility is secured by a pledge of $600 million of General
Mortgage Bonds issued by CEHE. Borrowing costs for London Interbank Offered Rate
("LIBOR")-based loans will be at a margin of 2.25 percent above LIBOR rates,
based on CEHE's current ratings. In addition, CEHE will pay lenders, based on
current ratings, a per annum commitment fee of 0.5 percent for their commitments
under the facility and a quarterly duration fee of 0.75 percent on the average
amount of outstanding borrowings during the quarter. The spread to LIBOR and the
commitment fee fluctuate based on the borrower's credit rating. Borrowings under
each of the facilities are subject to customary terms and conditions. However,
there is no requirement that CEHE make representations prior to borrowings as to
the absence of material adverse changes or litigation that could be expected to
have a material adverse effect. Borrowings under each of the credit facilities
are subject to acceleration upon the occurrence of events of default that the
Company and CEHE consider customary. The facility contains covenants, including
a debt (excluding transition and other securitization bonds) to total
capitalization covenant.
Citibank Global Markets Inc. served as sole lead arranger and bookrunner for
the new facility and CitiCorp North America, Inc. serves as the administrative
agent. Bank of America, N.A. and Deutsche Bank Securities Inc. served as
co-syndication agents. HSBC Bank USA, N.A. and The Bank of Nova Scotia served as
co-documentation agents.
The credit agreement described above is filed as Exhibit 4.1 to this report
and is incorporated by reference herein. The foregoing summary does not purport
to be complete and is qualified in its entirety by reference to the credit
agreement.
Item 8.01 Other Events.
CenterPoint Energy Resources Corp. ("CERC"), the Company's natural gas distribution, competitive natural gas sales and services, and pipelines and gas gathering subsidiary, and certain of its subsidiaries entered into a new receivables financing facility that became effective November 25, 2008. The new 364-day facility will provide additional liquidity to CERC and its subsidiaries. Availability under the facility ranges from $128 million to $375 million, reflecting seasonal changes in receivables balances. The new facility replaces a similar facility that expired in October 2008.
The exhibits listed below are filed herewith.
(d) Exhibits.
4.1 $600,000,000 Credit Agreement, dated as of November 25, 2008, among CenterPoint Energy Houston Electric, LLC, Bank of America, N.A. and Deutsche Bank Securities Inc., as co-syndication agents, HSBC Bank USA, N.A. and The Bank of Nova Scotia, as co-documentation agents, Citicorp North America, Inc., as administrative agent, and Citigroup Global Markets Inc., as sole lead arranger and bookrunner, and the banks named therein
4.2 Nineteenth Supplemental Indenture dated as of November 25, 2008 to the General Mortgage Indenture dated as of October 10, 2002
4.3 Officer's Certificate dated November 25, 2008 setting forth the form, terms and provisions of the Twentieth Series of General Mortgage Bonds
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