Cleco sells $175 million notes in three parts; Coreo plans €20 million 10% bonds

By Devika Patel

Knoxville, Tenn., Dec. 21 – Details of three private placement financings emerged in the market on Thursday.

Pineville, La., electric utility Cleco Power LLC sold $175 million senior notes in three tranches to fund capital investments and general corporate purposes.

Frankfurt-based real estate investment company Coreo AG plans a placement of €20 million 10% bonds and 640,000 warrants with Serengeti Asset Management LP. The warrants are exercisable at €2.50.

Proceeds will fund acquisitions of real estate assets.

Also, Millersburg, Pa.-based bank holding company Mid Penn Bancorp, Inc. completed a $10 million placement of 5.25% fixed-to-floating rate subordinated notes due Jan. 1, 2028 to fund general corporate purposes.

In its deal, Cleco Power sold $175 million of unsecured senior notes in three parts.

There was $25 million of series A 2.94% five-year bonds; $100 million of series B 3.08% six-year bonds; and $50 million of series C 3.17% seven-year bonds.

The five- and six-year bonds settled on Dec. 18, and the seven-year bonds will settle on March 26.

Mid Penn Bancorp settled a $10 million private placement of fixed-to-floating rate subordinated notes that will mature on Jan. 1, 2028. The deal was completed on Dec. 19.

Interest accrues at 5.25% per year for the first five years. After that, the notes bear interest at a floating rate equal to the Prime rate plus 50 basis points with a 5% floor.

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