8-KOther Events

CENTERPOINT ENERGY INC 8-K Report, Corporate Update (Jun 29, 2017)

Filed June 29, 2017For Securities:CNP

Summary

CenterPoint Energy, Inc. (CNP) announced on June 29, 2017, significant expansions of its credit facilities and commercial paper programs. These actions aim to increase financial flexibility and access to short-term funding. The company and its subsidiary, CenterPoint Energy Resources Corp. (CERC), have amended their credit agreements to raise aggregate commitments, which directly supports the increased capacity of their respective commercial paper programs. Specifically, CenterPoint's credit agreement commitment increased from $1.6 billion to $1.7 billion, enabling its commercial paper program to reach an aggregate principal amount of up to $1.7 billion. Similarly, CERC's credit agreement commitment was boosted from $600 million to $900 million, allowing its commercial paper program to be utilized up to $900 million. These adjustments provide CenterPoint and CERC with enhanced liquidity and the ability to manage their working capital needs more effectively.

Key Highlights

  • 1CenterPoint Energy (CNP) and its subsidiary CERC increased their aggregate credit agreement commitments.
  • 2CenterPoint's credit agreement commitment rose from $1.6 billion to $1.7 billion.
  • 3CERC's credit agreement commitment increased from $600 million to $900 million.
  • 4The size of CenterPoint's commercial paper program was increased to a maximum of $1.7 billion.
  • 5The size of CERC's commercial paper program was increased to a maximum of $900 million.
  • 6These actions enhance the companies' access to short-term debt financing.
  • 7The commercial paper notes are not registered under the Securities Act of 1933.

Frequently Asked Questions

The primary purpose is to enhance CenterPoint Energy and CERC's financial flexibility and liquidity. This provides them with greater access to short-term funding, which can be used for various corporate purposes, including working capital management and general corporate needs.

CenterPoint Energy's aggregate commitment under its credit agreement increased from $1.6 billion to $1.7 billion. Consequently, its commercial paper program's capacity to issue notes at any time outstanding increased to $1.7 billion.

CERC's aggregate commitment under its credit agreement increased from $600 million to $900 million. This allowed its commercial paper program's capacity to issue notes at any time outstanding to increase to $900 million.

No, the commercial paper notes have not been and will not be registered under the Securities Act of 1933. They are not being offered for sale to the general public, and their issuance is subject to registration or an applicable exemption from registration requirements.