CenterPoint Energy Inc. disclosed Oct. 9 that it terminated remaining commitments with two lenders in connection with financing its proposed merger with Vectren Corp.
The lenders had committed to provide a 364-day senior unsecured bridge term loan facility, amounting to $5 billion, to provide flexibility related to the timing of the long-term acquisition financing and to fund amounts payable by CenterPoint in connection with the merger. Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. were the initial lenders under the commitment letter.
As a result of the termination, the aggregate commitments under CenterPoint's amended credit agreement increased to $3.3 billion from $1.7 billion. It also increases the amount issuable under CenterPoint's commercial paper program by $1.6 billion to $3.3 billion.
If the merger falls through, commitments under the credit agreement and the size of the commercial paper program will revert to $1.7 billion.
The merger is expected to close in the first quarter of 2019. The Federal Energy Regulatory Commission approved the deal on Oct. 5.