CenterPoint Energy closes $1 billion two-year term loan via Mizuho

By Marisa Wong

Morgantown, W.Va., May 16 – CenterPoint Energy, Inc. entered into a $1 billion term loan agreement on May 15 with Mizuho Bank, Ltd. as administrative agent and lead arranger, according to an 8-K filing with the Securities and Exchange Commission.

The company borrowed the full $1 billion at closing and intends to use the proceeds for general corporate purposes, including the repayment debt.

The maturity date for the borrowings is May 15, 2021.

Loans bear interest at Libor plus a margin of 65 basis points.

The loan agreement contains a covenant that requires the company to maintain a ratio of debt to consolidated capitalization of not more than 65%. The permitted ratio may be temporarily increased to 70% if CenterPoint Energy Houston Electric, LLC experiences damage from a natural disaster in its service territory and the company certifies to the administrative agent that the system restoration costs incurred in connection with that natural disaster are reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which the company intends to seek to recover through securitization financing.

CenterPoint Energy is a public utility holding company based in Houston.

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