By Lisa Kerner
Charlotte, N.C., Nov. 13 – Cleco Power LLC, a wholly owned subsidiary of Cleco Corp., agreed to privately place $75 million of 3.68% senior notes due Nov. 15, 2025.
The initial closing of $30 million of the offering was completed on Nov. 13, according to an 8-K filed with the Securities and Exchange Commission.
The remaining $45 million of notes will be sold and issued on Dec. 15.
Proceeds will be used to partially replace cash used to repay debt that matured in May 2015 and July 2015.
Under the note purchase agreement, Cleco’s total debt must be equal to or less than 65% of total capitalization.
The notes have a make-whole call at Treasuries plus 50 basis points.
Purchasers include Northwestern Mutual Life Insurance Co., Pacific Life Insurance Co., Voya Insurance and Annuity Co., Reliastar Life Insurance Co. and Security Life of Denver Insurance Co.
Cleco is a Pineville, La.-based energy company and owner of Cleco Power, an electric utility company.
| Issuer: | Cleco Power LLC
|
| Issue: | Senior notes
|
| Amount: | $75 million
|
| Coupon: | 3.68%
|
| Maturity: | Nov. 15, 2025
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Nov. 13 for $30 million; Dec. 15 for $45 million
|
| Purchasers: | Northwestern Mutual Life Insurance Co., Pacific Life Insurance Co., Voya Insurance and Annuity Co., Reliastar Life Insurance Co., Security Life of Denver Insurance Co.
|
| Distribution: | Private placement
|
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