Cleco obtains $300 million revolver, $125 million term loan

By Rebecca Melvin

Concord, N.H., May 26 – Cleco Power LLC entered into a credit agreement with Regions Bank as administrative agent on May 21 that provides for a $300 million revolver and a $125 million term loan, according to an 8-K filed with the Securities and Exchange Commission.

The facilities replace Cleco Power’s existing revolving credit agreement and term loan agreement.

Under the new revolver, which extends through May 21, 2026, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. Borrowing costs under the agreement are currently equal to Libor plus 125 basis points plus commitment fees of 15 bps.

If Cleco Power’s credit ratings were to be downgraded one level by Fitch Ratings, Inc., Moody’s Investors Service, Inc. or Standard & Poor’s Financial Services LLC, Cleco Power may be required to pay higher fees and additional interest of 125 bps.

The term loan, which extends through May 21, 2024, bears interest at a rate of Libor plus 125 bps. The agreements include customary covenants, representations and warranties, and Libor-transition provisions.

Regions Capital Markets, JPMorgan Chase Bank, NA, Sumitomo Mitsui Banking Corp. and CoBank ACB are the bookrunners.

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

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