CenterPoint Energy lines up credit facility increase to $3 billion

By Wendy Van Sickle

Columbus, Ohio, May 29 – CenterPoint Energy, Inc. amended its credit agreement on Friday to increase the commitments to $3 billion from $1.7 billion, according to an 8-K filing with the Securities and Exchange Commission.

The incremental facility will become effective the earlier of the termination of all commitments of some lenders to provide a $5 billion 364-day senior unsecured bridge term loan facility and the payment in full of all obligations under the bridge facility and termination of all commitments under the bridge facility, in each case so long as CenterPoint’s merger agreement with Vectren Corp. has not been terminated.

On April 21, CenterPoint entered into a commitment letter with Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc. for a 364-day senior unsecured bridge term loan totaling $5 billion to help fund the merger with Vectren, an Evansville, Ind.-based energy holding company, as previously reported.

The incremental facility will expire on the earlier of the termination date of the credit agreement and 90 days after any termination of the merger agreement with Vectren without consummation of the merger.

JPMorgan Chase Bank, NA is the administrative agent.

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

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