CenterPoint replaces revolver with $4 billion in four new facilities

By Taylor Fox

New York, Feb. 4 – CenterPoint Energy, Inc. and its wholly-owned subsidiaries, CenterPoint Energy Houston Electric, LLC, CenterPoint Energy Resources Corp. and Vectren Utility Holdings, Inc., replaced existing revolving credit facilities with four revolvers totaling $4 billion, according to an 8-K filing with the Securities and Exchange Commission.

CenterPoint replaced its existing $3.3 billion unsecured revolving credit facility entered into on March 3, 2016 with a new $2.4 billion three-year senior unsecured revolver.

Borrowings bear interest at a rate equal to either Libor plus a margin, which is currently 162.5 basis points, based on the company’s credit ratings.

CenterPoint Energy Houston’s existing $300 million unsecured revolver entered into on March 3, 2016 was replaced with a new $300 million three-year senior unsecured revolver.

Borrowings under the facility bear interest at Libor plus a margin that is currently 137.5 bps, based on Houston Electric’s credit ratings.

CenterPoint Energy Resource replaced its existing $900 million senior unsecured revolver entered into on March 3, 2016 with a new $900 million three-year senior unsecured revolver.

Borrowings under the facility bear interest at Libor plus a margin that is currently 125 bps, based on CenterPoint Energy’s credit ratings.

Vectren replaced its existing $400 million senior unsecured revolver entered into on July 14, 2017 with a new $400 million three-year senior unsecured revolver.

The facility is guaranteed by its wholly owned subsidiaries, Indiana Gas Co., Inc., Southern Indiana Gas and Electric Co. and Vectren Energy Delivery of Ohio, Inc.

Borrowings under the facility bear interest Libor plus a margin that is currently 125 bps, based on Vectren’s current credit ratings.

The global coordinators for the four replacement facilities are JPMorgan Chase Bank, NA; Mizuho Bank, Ltd.; Wells Fargo Securities, LLC and BofA Securities, Inc. and were joined as lead arrangers and bookrunners by Citibank, NA, MUFG Bank, Ltd., RBC Capital Markets and Barclays Bank plc.

JPMorgan continues to serve as the administrative agent for the CenterPoint’s facility. Mizuho continues to serve as the administrative agent for Houston Electric’s facility. Wells Fargo Bank, NA continues to serve as the administrative agent for CERC’s facility. Bank of America, NA continues to serve as the administrative agent for Vectren’s facility.

CenterPoint Energy is a Houston-based electricity transmitter and distributor.

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