Current Report Filing (8-k)
May 16 2019 - 4:32PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 15, 2019
CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
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Texas
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1-31447
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74-0694415
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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1111 Louisiana
Houston, Texas
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77002
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(Address of principal executive offices)
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(Zip Code)
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Registrants telephone number, including area code: (713)
207-1111
Check the
appropriate box below if the Form
8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule
14a-12
under the Exchange Act (17
CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule
14d-2(b)
under the Exchange Act (17 CFR
240.14d-2(b))
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☐
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Pre-commencement
communications pursuant to Rule
13e-4(c)
under the Exchange Act (17 CFR
240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange
on which registered
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Common Stock, $0.01 par value
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CNP
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New York Stock Exchange
Chicago Stock Exchange
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Depositary shares, each representing a 1/20th interest in a share of 7.00% Series B Mandatory Convertible Preferred Stock, $0.01 par value
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CNP/PB
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New York Stock Exchange
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (§230.405) or Rule
12b-2
of the Securities Exchange Act of 1934
(§240.12b-2).
Emerging Growth Company ☐
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Item 1.01
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Entry into a Material Definitive Agreement
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On May 15, 2019, CenterPoint Energy, Inc. (the Company), Mizuho Bank, Ltd., as administrative agent and lead arranger, and the
banks party thereto entered into a $1.0 billion Term Loan Agreement (the Term Loan Agreement). The Company borrowed the full $1.0 billion at closing and intends to use the proceeds thereof for general corporate purposes,
including the repayment of indebtedness of the Company and its subsidiaries. The maturity date for the borrowings under the Term Loan Agreement is May 15, 2021.
Borrowings under the Term Loan Agreement bear interest, at the Companys option, at a rate equal to either (i) the Eurodollar Rate
(as defined in the Term Loan Agreement) plus a margin of 0.650% or (ii) the Alternate Base Rate (as defined in the Term Loan Agreement). The Term Loan Agreement contains certain covenants, including a covenant that requires the Company not to
exceed a specified ratio of debt (excluding, among other things, transition and system restoration bonds) to consolidated capitalization (excluding, among other things,
non-cash
reductions to net income). The
Term Loan Agreement provides a temporary increase of the permitted ratio of debt to consolidated capitalization 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 by the Company and its subsidiaries in connection with that natural disaster are reasonably likely to exceed $100 million in a consecutive twelve-month period, all or part
of which the Company or one of its subsidiaries intend to seek to recover through securitization financing. Such temporary increase in the financial ratio covenant would be in effect from the date the Company delivers its certification until the
earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of the delivery of such certification or (iii) the revocation by the Company of such certification in accordance with the terms of the
Term Loan Agreement.
Borrowings under the Term Loan Agreement are subject to acceleration upon the occurrence of events of default that
the Company considers customary. The Term Loan Agreement also provides for customary fees, including administrative agent fees and other fees.
Mizuho Bank, Ltd. participates in the credit facilities of the Company and its affiliates.
The Term Loan Agreement described above is filed as Exhibit 4.1 to this Current Report and is incorporated by reference herein. The foregoing
summary does not purport to be complete and is qualified in its entirety by reference to the Term Loan Agreement.
Item 2.03
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Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance
Sheet Arrangement of a Registrant
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To the extent required by Item
2.03 of Form
8-K,
the information regarding the Term Loan Agreement contained in Item 1.01 of this Current Report on Form
8-K
is incorporated by reference herein.
Item 9.01
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Financial Statements and Exhibits.
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The exhibit listed below is filed herewith. The Term Loan Agreement included as an exhibit is included only to provide information to investors
regarding its terms. The Term Loan Agreement listed below may contain representations, warranties and other provisions that were made, among other things, to provide the parties thereto with specified rights and obligations and to allocate risk
among them, and such agreement should not be relied upon as constituting or providing any factual disclosures about us, any other persons, any state of affairs or other matters.
(d) Exhibits.
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EXHIBIT
NUMBER
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EXHIBIT DESCRIPTION
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4.1
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$1,000,000,000 Term Loan Agreement dated as of May 15, 2019 among CenterPoint Energy, Inc., as Borrower, Mizuho Bank, Ltd., as Administrative Agent and Lead Arranger, and the banks named therein.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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CENTERPOINT ENERGY, INC.
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Date: May 16, 2019
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By:
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/s/ Kristie L. Colvin
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Kristie L. Colvin
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Senior Vice President and Chief Accounting Officer
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