8-KFinancial Events

CENTERPOINT ENERGY INC 8-K Report, Financial Obligation (Mar 18, 2005)

Filed March 18, 2005For Securities:CNP

Summary

CenterPoint Energy, Inc. (CNP) filed an 8-K on March 18, 2005, to disclose a significant borrowing event. On March 15, 2005, the company drew $416 million under its $1 billion five-year revolving credit facility. This borrowing was primarily to fund a federal income tax payment, indicating a substantial cash outflow for tax obligations. Following this borrowing, the outstanding balance on the credit facility increased to $651 million, leaving $349 million available under the $1 billion facility. Investors should note that while this borrowing addresses an immediate tax need, it increases the company's short-term debt obligations. Further details on the credit facility and liquidity are available in the company's Form 10-K for the year ended December 31, 2004.

Key Highlights

  • 1CenterPoint Energy borrowed $416 million on March 15, 2005.
  • 2The borrowing was made under the company's $1 billion five-year revolving credit facility.
  • 3The primary purpose of the borrowing was to make a federal income tax payment.
  • 4After the borrowing, $651 million is outstanding under the credit facility.
  • 5This leaves $349 million of available capacity under the $1 billion credit facility.

Frequently Asked Questions

The company borrowed $416 million primarily to make a federal income tax payment.

After the borrowing, there was a total of $651 million outstanding under the $1 billion credit facility.

Following the $416 million borrowing, there is $349 million of available capacity remaining under the $1 billion credit facility.

More information regarding the $1 billion credit facility can be found in the 'Management's Discussion and Analysis of Financial Condition and Results of Operations -- Liquidity and Capital Resources -- Future Sources and Uses of Cash -- Credit Facilities' section of CenterPoint Energy's Annual Report on Form 10-K for the year ended December 31, 2004, which is incorporated by reference in this filing.