CenterPoint Energy 2013 Annual Report Download - page 129

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107
Credit Facilities. As of December 31, 2013 and 2012, CenterPoint Energy, CenterPoint Houston and CERC Corp. had the
following revolving credit facilities and utilization of such facilities (in millions):
December 31, 2013 December 31, 2012
Size of
Facility Loans Letters
of Credit Commercial
Paper Size of
Facility Loans Letters
of Credit Commercial
Paper
CenterPoint Energy..... $ 1,200 $ — $ 6 $ — $ 1,200 $ — $ 7 $ —
CenterPoint Houston... 300 — 4 — 300 — 4 —
CERC Corp................. 600 — — 118 950 — — —
Total ....................... $ 2,100 $ — $ 10 $ 118 $ 2,450 $ — $ 11 $ —
CenterPoint Energy’s $1.2 billion revolving credit facility, which is scheduled to terminate on September 9, 2018, can be
drawn at the London Interbank Offered Rate (LIBOR) plus 125 basis points based on CenterPoint Energy’s current credit ratings.
The revolving credit facility contains a financial covenant which limits CenterPoint Energy’s consolidated debt (excluding transition
and system restoration bonds) to an amount not to exceed 65% of CenterPoint Energy’s consolidated capitalization. The financial
covenant limit will temporarily increase from 65% to 70% 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 revolving credit facility, which is scheduled to terminate on September 9, 2018, can be
drawn at LIBOR plus 112.5 basis points based on CenterPoint Houston’s current credit ratings. The revolving credit facility
contains a financial covenant which limits CenterPoint Houston’s consolidated debt (excluding transition and system restoration
bonds) to an amount not to exceed 65% of CenterPoint Houston’s consolidated capitalization.
CERC Corp.’s $600 million revolving credit facility, which is scheduled to terminate on September 9, 2018, can be drawn at
LIBOR plus 150 basis points based on CERC Corp.’s current credit ratings. The revolving credit facility contains a financial
covenant which limits CERC’s consolidated debt to an amount not to exceed 65% of CERC’s consolidated capitalization.
CenterPoint Energy, CenterPoint Houston and CERC Corp. were in compliance with all financial debt covenants as of
December 31, 2013.
Maturities. CenterPoint Energy’s maturities of long-term debt, capital leases and sinking fund requirements, excluding the
ZENS obligation, are $354 million in 2014, $640 million in 2015, $716 million in 2016, $1.0 billion in 2017 and $1.2 billion in
2018. These maturities include transition and system restoration bond principal repayments on scheduled payment dates
aggregating $354 million in 2014, $372 million in 2015, $391 million in 2016, $411 million in 2017 and $434 million in 2018.
Liens. As of December 31, 2013, CenterPoint Houston’ s assets were subject to liens securing approximately $102 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 2013, 2012 and 2011 have been satisfied
by certification of property additions. The replacement fund requirement to be satisfied in 2014 is approximately $198 million,
and the sinking fund requirement to be satisfied in 2014 is approximately $1.6 million. CenterPoint Energy expects CenterPoint
Houston to meet these 2014 obligations by certification of property additions. As of December 31, 2013, CenterPoint Houston’s
assets were also subject to liens securing approximately $1.9 billion of general mortgage bonds which are junior to the liens of
the first mortgage bonds.