Cleco Evangeline retires $126.6 million 8.82% notes, calls remainder

By Angela McDaniels

Tacoma, Wash., Feb. 22 - Cleco Evangeline LLC has retired $126.6 million of its 8.82% senior secured bonds due 2019 and will redeem the remaining $35.2 million of outstanding bonds, according to an 8-K filed with the Securities and Exchange Commission by parent company Cleco Corp.

The holders of the remaining $35.2 million of bonds will receive a make-whole payment of approximately $10 million.

The filing stated that once the bonds are redeemed, $30.1 million of restricted cash will be released to Cleco Evangeline.

The $126.6 million of retired bonds were held by J.P. Morgan Ventures Energy Corp. They were retired as part of an agreement reached on Feb. 22 between the holder and Cleco Evangeline to terminate the existing capacity sale and tolling agreement between the parties and enter into a new capacity, sale and tolling agreement effective March 1.

The $5.3 million of accrued interest on the retired bonds was eliminated. The company will pay $1.5 million of accrued interest on the remaining bonds when they are redeemed.

Cleco Evangeline owns and operates the Evangeline Power Station in St. Landry, Fla., and Cleco is an energy services company based in Pineville, La.

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