HOUSTON, Sept. 9, 2011 /PRNewswire/ -- CenterPoint Energy, Inc. (NYSE: CNP) announced today that it closed three revolving bank credit facilities totaling $2.45 billion for the parent and its wholly-owned subsidiaries, CenterPoint Energy Houston Electric, LLC (CEHE) and CenterPoint Energy Resources Corp. (CERC), which replaced their existing revolving credit facilities.
The three revolving five-year senior unsecured credit facilities include:
- $1.2 billion at CenterPoint Energy,
- $300 million at CEHE, the company's electric transmission and distribution subsidiary, and
- $950 million at CERC, the company's natural gas distribution, pipelines and field services subsidiary.
"I am pleased that we have been able to take advantage of the current receptive market conditions and lock in the short term liquidity provided by these facilities for the next 5 years with an excellent bank group," said Gary L. Whitlock, executive vice president and chief financial officer of CenterPoint Energy. "We continue to take the steps necessary to strengthen our liquidity and to maintain our financial flexibility."
Based on current credit ratings, the CenterPoint Energy facility has a drawn cost of LIBOR plus 175 basis points, and the CEHE facility and CERC facility each have a drawn cost of LIBOR plus 150 basis points.
These revolving credit facilities may be drawn on from time to time to provide funds used for general corporate purposes of the companies and to support commercial paper. The facilities may also be utilized to obtain letters of credit.
The global coordinators for the three facilities are J.P. Morgan Securities LLC, RBS Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which, together with Barclays Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC, also served as joint lead arrangers and joint bookrunners for the facilities. JPMorgan Chase Bank, N.A. serves as the administrative agent for CenterPoint Energy's and CEHE's facilities, and Citibank, N.A. serves as the administrative agent for CERC's facility.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total more than $19 billion. With over 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the website at www.CenterPointEnergy.com.
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SOURCE CenterPoint Energy, Inc.