CenterPoint Energy 2012 Annual Report Download - page 109

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87
Credit Facilities. As of December 31, 2011 and 2012, CenterPoint Energy, CenterPoint Houston and CERC Corp. had the
following revolving credit facilities and utilization of such facilities (in millions):
December 31, 2011 December 31, 2012
Size of
Facility Loans Letters
of Credit Commercial
Paper Loans Letters
of Credit Commercial
Paper
CenterPoint Energy ........ $ 1,200 $ — $ 16 $ — $ — $ 7 $ —
CenterPoint Houston ...... 300 — 4 — — 4 —
CERC Corp. ................... 950 — — 285 — — —
Total........................... $ 2,450 $ — $ 20 $ 285 $ — $ 11 $ —
CenterPoint Energy’s $1.2 billion credit facility, which is scheduled to terminate September 9, 2016, can be drawn at the
London Interbank Offered Rate (LIBOR) plus 150 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). The facility allows for a temporary increase of the permitted ratio
in the financial covenant 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 consecutive twelve-month period, all or part of which CenterPoint Houston
intends to seek to recover through securitization financing. Such temporary increase in the financial 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 $300 million credit facility, which is scheduled to terminate September 9, 2016, can be drawn at LIBOR
plus 125 basis points based on CenterPoint Houston's current credit ratings. The facility contains a debt (excluding transition and
system restoration bonds) to total capitalization covenant which limits debt to 65% of the borrower's total capitalization.
CERC Corp.’s $950 million credit facility, which is scheduled to terminate September 9, 2016, can be drawn at LIBOR plus
150 basis points based on CERC Corp.’s current credit ratings. The facility contains a debt to total capitalization covenant which
limits debt to 65% of CERC's total capitalization.
CenterPoint Energy, CenterPoint Houston and CERC Corp. were in compliance with all debt covenants as of December 31,
2012.
Maturities. CenterPoint Energy’s maturities of long-term debt, capital leases and sinking fund requirements, excluding the
ZENS obligation, are $1.3 billion in 2013, $514 million in 2014, $791 million in 2015, $716 million in 2016 and $1.0 billion in
2017. These maturities include transition and system restoration bond principal repayments on scheduled payment dates
aggregating $447 million in 2013, $354 million in 2014, $372 million in 2015, $391 million in 2016 and $411 million in 2017.
Liens. As of December 31, 2012, CenterPoint Houston’s assets were subject to liens securing approximately $253 million of
first mortgage bonds. Sinking or improvement fund and replacement fund requirements on the first mortgage bonds may be satisfied
by certification of property additions. Sinking fund and replacement fund requirements for 2010, 2011 and 2012 have been satisfied
by certification of property additions. The replacement fund requirement to be satisfied in 2013 is approximately $189 million,
and the sinking fund requirement to be satisfied in 2013 is approximately $3 million. CenterPoint Energy expects CenterPoint
Houston to meet these 2013 obligations by certification of property additions. As of December 31, 2012, CenterPoint Houston’s
assets were also subject to liens securing approximately $2.4 billion of general mortgage bonds which are junior to the liens of
the first mortgage bonds.