Reliant Energy amends loan, lowering minimum EBITDA to interest expense requirement

By Sara Rosenberg

New York, Dec. 19 - Reliant Energy Inc. amended its credit facility, lowering the minimum EBITDA to interest expense ratio requirement during 2006 and changing the method of calculating its two financial covenants, according to a company news release.

Furthermore, under the amendment, the Houston-based energy company must use the net unrestricted proceeds from both the Ceredo and New York City asset sales to pay down debt. Under the previous agreement, Reliant had the right to retain up to $400 million from these asset sales for general corporate purposes.

"This amendment provides additional flexibility for the company as we position ourselves to capitalize on the opportunities we anticipate in 2007 and beyond," said Mark Jacobs, executive vice president and chief financial officer, in the release.

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