Short-term Borrowings and Long-term Debt

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Short-term Borrowings and Long-term Debt [Text Block]

Short-term Borrowings and Long-term Debt

(a)Short-term Borrowings

Inventory Financing. NGD currently has AMAs associated with its utility distribution service in Arkansas, north Louisiana and Oklahoma that extend through 2020. Pursuant to the provisions of the agreements, NGD sells natural gas and agrees to repurchase an equivalent amount of natural gas during the winter heating seasons at the same cost, plus a financing charge. These transactions are accounted for as an inventory financing and had an associated principal obligation of $24 million and $35 million as of June 30, 2017 and December 31, 2016, respectively.

(b) Long-term Debt

Revolving Credit Facility.  In June 2017, CERC entered into an amendment to its revolving credit facility to extend the termination date thereof from March 3, 2021 to March 3, 2022 and to terminate the swingline loan subfacility thereunder. The amendment also increased the aggregate commitments by $300 million to $900 million under its revolving credit facility. In connection with the amendment to increase the aggregate commitments under its revolving credit facility, CERC increased the size of its commercial paper program to permit the issuance of commercial paper notes in an aggregate principal amount not to exceed $900 million at any time outstanding.

As of June 30, 2017 and December 31, 2016, CERC had the following revolving credit facility and utilization of such facility:

June 30, 2017									December 31, 2016
Size of Facility		Loans		Letters of Credit		Commercial Paper			Size of Facility		Loans		Letters of Credit		Commercial Paper
(in millions)
$	900	$	—	$	—	$	718	(1)	$	600	$	—	$	4	$	569	(1)

(1) Weighted average interest rate was approximately 1.41% and 1.03% as of June 30, 2017 and December 31, 2016, respectively.

Execution Date	Size of Facility			Draw Rate of LIBOR plus (2)		Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio		Debt for Borrowed Money to Capital Ratio as of June 30, 2017	Termination Date (3)
	(in millions)
March 3, 2016	$	900	(1)	1.25	%	65	%	37.1%	March 3, 2022

(1) Amended on June 16, 2017 to increase the aggregate commitment size as noted above.

(2) Based on current credit ratings.

(3) Amended on June 16, 2017 to extend the termination date as noted above.

CERC Corp. was in compliance with all financial debt covenants as of June 30, 2017.