CenterPoint Energy 2009 Annual Report Download - page 123

101
Revolving Credit Facilities. As of December 31, 2008 and 2009, the following loan balances were outstanding
under CenterPoint Energy’s long-term revolving credit facilities (in millions):
December 31,
2008
December 31,
2009
CenterPoint Energy credit facility borrowings ..................................... $ 2 64 $ —
CenterPoint Houston credit facility borrowings ................................... 251 —
CERC Corp. credit facility borrowings ................................................ 926 —
Total credit facility borrowings ...................................................... $ 1,441 $ —
In addition, as of December 31, 2008 and 2009, CenterPoint Energy had approximately $27 million and
$25 million, respectively, of outstanding letters of credit under its $1.2 billion credit facility. CenterPoint Houston
had approximately $4 million of outstanding letters of credit under its $289 million credit facility as of both
December 31, 2008 and 2009. There was no commercial paper outstanding that would have been backstopped by
CenterPoint Energy’s $1.2 billion credit facility or by CERC Corp.’s credit facility as of December 31, 2008 and
2009. CenterPoint Energy, CenterPoint Houston and CERC Corp. were in compliance with all debt covenants as of
December 31, 2009.
CenterPoint Energy’s $1.2 billion credit facility has a first drawn cost of the London Interbank Offered Rate
(LIBOR) plus 55 basis points based on CenterPoint Energy’s current credit ratings. The facility contains a debt
(excluding transition and system restoration bonds) to earnings before interest, taxes, depreciation and amortization
(EBITDA) covenant (as those terms are defined in the facility). Such covenant was modified twice in 2008 to
provide additional debt capacity. The second modification was to provide debt capacity pending the financing of
system restoration costs following Hurricane Ike. That modification was terminated with CenterPoint Houston’s
issuance of bonds to securitize such costs in November 2009. In February 2010, CenterPoint Energy amended its
credit facility to modify the financial ratio covenant to allow for a temporary increase of the permitted ratio of debt
(excluding transition and system restoration bonds) to EBITDA from 5 times to 5.5 times if CenterPoint Houston
experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the
administrative agent that CenterPoint Houston has incurred system restoration costs reasonably likely to exceed
$100 million in a calendar year, all or part of which CenterPoint Houston intends to seek to recover through
securitization financing. Such temporary increase in the financial ratio covenant would be in effect from the date
CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization
financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification.
CenterPoint Houston’s $289 million credit facility contains a debt (excluding transition and system restoration
bonds) to total capitalization covenant. The facility’s first drawn cost is LIBOR plus 45 basis points based on
CenterPoint Houston’s current credit ratings.
On October 7, 2009, the size of the CERC Corp. revolving credit facility was reduced from $950 million to
$915 million through removal of Lehman Brothers Bank, FSB (Lehman) as a lender. Prior to its removal, Lehman
had a $35 million commitment to lend. All credit facility loans to CERC Corp. that were funded by Lehman were
repaid in September 2009. CERC Corp.’s $915 million credit facility’s first drawn cost is LIBOR plus 45 basis
points based on CERC Corp.’s current credit ratings. The facility contains a debt to total capitalization covenant.
Under CenterPoint Energy’s $1.2 billion credit facility, CenterPoint Houston’s $289 million credit facility and
CERC Corp.’s $915 million credit facility, an additional utilization fee of 5 basis points applies to borrowings any
time more than 50% of the facility is utilized. The spread to LIBOR and the utilization fee fluctuate based on the
borrower’s credit rating.
Maturities. CenterPoint Energy’s maturities of long-term debt, capital leases and sinking fund requirements,
excluding the ZENS obligation, are $782 million in 2010, $852 million in 2011, $353 million in 2012, $1.5 billion
in 2013 and $1.2 billion in 2014. Maturities include transition and system restoration bond principal repayments on
scheduled payment dates aggregating $241 million in 2010, $283 million in 2011, $307 million in 2012, $330
million in 2013 and $235 million in 2014. Maturities in 2010 include $290 million of pollution control bonds issued
on behalf of CenterPoint Energy which were purchased by CenterPoint Energy in January 2010 and $45 million of
debentures redeemed in January 2010.