Cleco Corporate Holdings gets $300 million five-year term loan

By Angela McDaniels

Tacoma, Wash., July 1 – Cleco Corporate Holdings LLC entered into a credit agreement on June 28 that provides for a $300 million term loan due June 28, 2021, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus a margin that ranges from 125 basis points to 200 bps depending on the company’s credit ratings.

The joint lead arrangers and joint bookrunners are Mizuho Bank, Ltd., Canadian Imperial Bank of Commerce, New York Branch, JPMorgan Chase Bank, NA, Regions Bank, Sumitomo Mitsui Banking Corp., Bank of Nova Scotia and Wells Fargo Bank, NA. Mizuho Bank is the administrative agent.

Cleco intends to use the proceeds to repay the remaining amounts due under its acquisition loan facility.

Under the terms of the credit agreement, Cleco must keep its percentage of debt to total capitalization at no more than 65%.

The term loan is secured by a pledge of Cleco’s equity interests in its wholly owned subsidiary, Cleco Power LLC.

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

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