Cleco gets $1.45 billion loans, Cleco Power gets $300 million revolver

By Marisa Wong

Morgantown, W.Va., April 19 – Cleco Corp. entered into a credit agreement that consists of a $1.35 billion three-year acquisition term loan facility and a $100 million five-year revolving credit facility in connection with its recently completed merger, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the credit agreement on April 13 through an indirect wholly owned subsidiary of Cleco Partners, LP. Cleco Partners is owned by a group of investors led by Macquarie Infrastructure Partners III, LP and British Columbia Investment Management Corp., together with John Hancock Financial and other infrastructure investors. Following the merger with Cleco Partners, Cleco Corp. became Cleco Corporate Holdings LLC.

At closing, Cleco borrowed $1.35 billion under the term loan to finance a portion of the merger.

Mizuho Bank, Ltd. is the administrative agent under the credit agreement. Canadian Imperial Bank of Commerce, New York branch, Credit Agricole CIB, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp. and Bank of Nova Scotia are the joint lead arrangers and joint bookrunners.

The acquisition term loan matures on April 13, 2019. The revolver matures on April 13, 2021.

The $100 million commitment under the revolver includes up to $10 million for swingline loans and up to $100 million for letters of credit. As of April 13, the full $100 million was available for borrowing.

Each of the term loan and the revolver bears interest at adjusted Libor plus a margin of 125 basis points to 275 bps, depending on long-term secured senior debt ratings.

The credit agreement requires the company to maintain its percentage of debt to total capitalization at a level that does not exceed 65%.

Obligations under the credit agreement are secured by a pledge of the company’s equity interests in its wholly owned subsidiary, Cleco Power LLC.

Cleco Power facility

Also in connection with the merger, Cleco Power entered into a $300 million five-year revolver on April 13.

Mizuho Bank, Ltd. is the administrative agent. Canadian Imperial Bank of Commerce, New York branch, Credit Agricole CIB, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp. and Bank of Nova Scotia are the joint lead arrangers and joint bookrunners.

The revolver matures on April 13, 2021.

The $300 million commitment includes up to $35 million for swingline loans and up to $300 million for letters of credit. As of April 13, all $300 million was available for borrowing.

The facility bears interest at adjusted Libor plus a margin of 100 basis points to 200 bps, depending on the company’s long-term senior debt ratings.

The credit agreement requires Cleco Power to maintain its percentage of debt to total capitalization at a level that does not exceed 65%.

In addition, in connection with completion of the merger, Cleco and Cleco Power repaid all remaining amounts outstanding under their respective amended and restated credit agreements dated Oct. 16, 2013. Those facilities have been terminated.

Cleco is a Pineville, La.-based energy company. Cleco Power is an electric utility.

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