CenterPoint repays about $1.68 billion of bank debt; permanently cuts facility size to $750 million

By Sara Rosenberg

New York, Dec. 21 - CenterPoint Energy Inc. permanently reduced its credit facility to $750 million from $2.34 billion by repaying its $915 million term loan in full on Dec. 15 and reducing its revolver size to $750 million from $1.425 billion, according to a company news release.

Furthermore, all $767 million of borrowings drawn under the revolver were repaid as well.

The primary source of funding for these debt payments came from the completion of the first step in the sale of the CenterPoint's interest in Texas Genco Holdings Inc., from which CenterPoint received cash proceeds of $2.231 billion on Dec. 15.

"We are very pleased to begin executing our de-leveraging strategy," said David M. McClanahan, chief executive officer, in the release. "Since our separation from Reliant Energy in October 2002, we have worked very diligently to execute our strategy of monetizing our generation assets and using the proceeds to reduce our debt. Following the recent closing of our fossil generation assets, we are now in a position to reduce our debt levels as we committed to do."

CenterPoint Energy is a Houston-based energy delivery company.

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