Moody’s rates Cleco notes Baa3

Moody's Investors Service said it assigned a Baa3 senior secured rating to Cleco Corp.’s new senior secured note issuance of at least $500 million.

The outlook is stable.

Proceeds are expected to be used to refinance a portion of the $1.35 billion senior secured bank term loan that was used to finance the acquisition of Cleco by a Macquarie-led investor group on April 13.

The new senior secured notes will rank pari passu with the pre-existing $1.35 billion senior secured bank term loan and Cleco’s $100 million senior secured revolving credit facility.

Moody’s said the Baa3 senior secured rating is underpinned by the company’s strong credit quality and A3 rating of its principal operating subsidiary, Cleco Power. Cleco Power's A3 senior unsecured rating reflects the credit supportive regulatory framework in Louisiana, anchored by a formula rate plan that we expect will provide timely cost and investment recovery; stable and strong cash flow generation and a solid liquidity profile.

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