By Lisa Kerner
Charlotte, N.C., May 18 – Cleco Corporate Holdings LLC completed the sale of senior secured notes totaling $885 million on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.
The notes were issued as follows:
• $535 million of 3.743% notes due 2026; and
• $350 million of 4.973% notes due 2046.
Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. were the bookrunners for the Rule 144A offering.
Proceeds will be used to repay a portion of the amounts due under the company’s acquisition loan facility.
Cleco may redeem the notes in whole or in part any time prior to Feb. 1, 2026, in the case of the 2026 notes, or Nov. 1, 2045, in the case of the 2046 notes, at a redemption price equal to par plus accrued interest, if any, and a make-whole amount. They are then redeemable at par plus accrued interest.
Cleco is a Pineville, La.-based energy company and owner of Cleco Power, an electric utility company.
| Issuer: | Cleco Corporate Holdings LLC
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| Issue: | Senior secured notes
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| Bookrunners: | Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
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| Pricing date: | May 12
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| Settlement date: | May 17
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| Ratings: | Moody’s: Baa3
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| Distribution: | Rule 144A
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| Ten-year notes
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| Amount: | $535 million
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| Coupon: | 3.743%
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| Maturity: | May 1, 2026
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| Call option: | Make-whole call at Treasuries plus 30 bps any time prior to Feb. 1, 2026 and at par after Feb. 1, 2026
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| Thirty-year notes
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| Amount: | $350 million
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| Coupon: | 4.973%
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| Maturity: | May 1, 2046
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| Call option: | Make-whole call at Treasuries plus 40 bps any time prior to Nov. 1, 2045 and at par after Nov. 1, 2045
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