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Debt
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Debt
Note 8 — Debt
Cleco Power’s total indebtedness as of December 31, 2018, and 2017 was as follows:
Cleco Power
 
 
 
 
AT DEC. 31,
 
(THOUSANDS)
2018

 
2017

Bonds
 
 
 
Senior notes, 2.94%, due 2022
$
25,000

 
$
25,000

Senior notes, 3.08%, due 2023
100,000

 
100,000

Senior notes, 3.17%, due 2024
50,000

 

Senior notes, 3.68%, due 2025
75,000

 
75,000

Senior notes, 3.47%, due 2026
130,000

 
130,000

Senior notes, 4.33%, due 2027
50,000

 
50,000

Senior notes, 3.57%, due 2028
200,000

 
200,000

Senior notes, 6.50%, due 2035
295,000

 
295,000

Senior notes, 6.00%, due 2040
250,000

 
250,000

Senior notes, 5.12%, due 2041
100,000

 
100,000

Series A GO Zone bonds, 2.00%, due 2038, mandatory tender in 2020
50,000

 
50,000

Series B GO Zone bonds, 4.25%, due 2038
50,000

 
50,000

Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023
31,625

 
50,819

Total bonds
1,406,625

 
1,375,819

Other long-term debt
 

 
 

Barge lease obligations
16,418

 

Gross amount of long-term debt
1,423,043

 
1,375,819

Less: long-term debt due within one year
20,571

 
19,193

Less: capital lease obligations classified as long-term debt due within one year
557

 

Unamortized debt discount
(5,695
)
 
(6,010
)
Unamortized debt issuance costs
(8,446
)
 
(9,141
)
Total long-term debt and capital leases, net
$
1,387,774


$
1,341,475


Cleco’s total indebtedness as of December 31, 2018, and 2017 was as follows:
Cleco
 
 
 
 
AT DEC. 31,
 
(THOUSANDS)
2018

 
2017

Total Cleco Power long-term debt and capital leases, net
$
1,387,774

 
$
1,341,475

Cleco Holdings’ long-term debt, net
 
 
 
Senior notes, 3.250%, due 2023
165,000

 
165,000

Senior notes, 3.743%, due 2026
535,000

 
535,000

Senior notes, 4.973%, due 2046
350,000

 
350,000

Bank term loan, variable rate, due 2021
300,000

 
300,000

Unamortized debt issuance costs(1)
(1,989
)
 
(2,516
)
Fair value adjustment
138,700

 
147,146

Total Cleco long-term debt and capital leases, net
$
2,874,485

 
$
2,836,105


(1)For December 31, 2018, and 2017, this amount includes unamortized debt issuance costs for Cleco Holdings of $8.2 million and $9.2 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $6.3 million and $6.7 million, respectively. For more information, see Note 5 — “Regulatory Assets and Liabilities — Cleco Holdings’ 2016 Merger Adjustments.”

The principal amounts payable under long-term debt agreements for each year through 2023 and thereafter are as follows:
(THOUSANDS)
CLECO
CLECO POWER
For the year ending Dec. 31,
 
 
2019
$
20,571

$
20,571

2020
$
11,054

$
11,054

2021
$
300,000

$

2022
$
25,000

$
25,000

2023
$
265,000

$
100,000

Thereafter
$
2,135,000

$
1,250,000



The amounts payable under the capital lease agreements for each year through 2023 and thereafter are as follows:
(THOUSANDS)
CLECO
CLECO POWER
For the year ending Dec. 31,
 
 
2019
$
557

$
557

2020
$
617

$
617

2021
$
682

$
682

2022
$
755

$
755

2023
$
836

$
836

Thereafter
$
12,971

$
12,971



Cleco Power Debt
Cleco Power had no short-term debt outstanding at December 31, 2018, and 2017.
At December 31, 2018, Cleco Power’s long-term debt outstanding was $1.41 billion, of which $21.1 million was due within one year. The long-term debt due within one year at December 31, 2018, represents $20.6 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $0.5 million of capital lease payments.
On December 18, 2017, Cleco Power entered into an agreement for the issuance and sale in a private placement of an aggregate principal amount of $175.0 million of senior notes. The senior notes were issued in two tranches. The first tranche was issued on December 18, 2017, with a principal amount of $25.0 million at an interest rate of 2.94% and $100.0 million at an interest rate of 3.08%, with final maturity dates in December 2022 and 2023, respectively. The second tranche was issued on March 26, 2018, with a principal amount of $50.0 million at an interest rate of 3.17%, with a final maturity date in December 2024. The proceeds from the issuance and sale were used for capital investments and general utility purposes.
On April 2, 2018, Cleco Power entered into a capital lease agreement for use of 42 dedicated barges to transport petroleum coke and limestone to Madison Unit 3. For more information on the capital lease agreement, see Note 16 — “Litigation, Other Commitments and Contingencies, and Disclosures about Guarantees — Other Commitments — Fuel Transportation Agreement.”

Cleco Debt
Cleco had no short-term debt outstanding at December 31, 2018, and 2017.
At December 31, 2018, Cleco’s long-term debt outstanding was $2.90 billion, of which $21.1 million was due within one year. The long-term debt due within one year at December 31, 2018, represents $20.6 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $0.5 million of capital lease payments.
On July 31, 2018, Cleco Holdings amended its $300.0 million bank term loan agreement and its $100.0 million revolving credit facility agreement to release any and all collateral from all of its debt obligations under those agreements. As a result of the release of collateral, Moody’s and Fitch replaced Cleco Holdings’ senior secured debt rating with a senior unsecured debt rating. For more information on Cleco’s credit ratings and their impacts, see Note 16 — “Litigation, Other Commitment and Contingencies, and Disclosures about Guarantees — Risks and Uncertainties.”
In connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings issued $300.0 million under a new bridge loan agreement and $100.0 million under a new term loan agreement. Both loan agreements are variable rate debt and have a three-year term. Both loan agreements contain certain financial covenants, including requiring Cleco Holdings to maintain (i) a debt to capital ratio (as defined in the applicable agreement) below 65% and (ii) a rating applicable to the Company’s senior debt rating (as defined in the applicable agreement). Cleco Holdings anticipates that some or all of the variable rate debt may be replaced or repaid with long-term financing, markets permitting, within 12 months of the closing of the Cleco Cajun Transaction.
In connection with Cleco Cajun Transaction, Cleco Holdings, on behalf of Cleco Cajun, issued three letters of credit totaling $1.1 million to a capacity agreement customer and a gas transport company. These letters of credit automatically renew each year and have no impact on the Cleco Holdings’ credit facility.

Credit Facilities
At December 31, 2018, Cleco Holdings had a $100.0 million credit facility. The credit facility includes restrictive financial covenants and expires in 2021. The borrowing costs under Cleco Holdings’ credit facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus commitment fees of 0.275%. If Cleco Holding’s credit ratings were to be downgraded one level, Cleco Holdings could be required to pay higher fees and additional interest of 0.075% and 0.50%, respectively, under the pricing levels of its credit facility. Under covenants contained in Cleco Holdings’ credit facility, Cleco is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2018, $655.0 million of Cleco’s member’s equity was unrestricted. At December 31, 2018, Cleco Holdings was in compliance with the covenants of its credit facility. In connection with the Cleco Cajun Transaction, Cleco Holdings increased its credit facility capacity by $75.0 million, for a total credit facility of $175.0 million. All other terms remained the same. Also in connection with the Cleco Cajun Transaction on February 4, 2019, Cleco Holdings made a $75.0 million draw on its credit facility, which was repaid on February 5, 2019.
At December 31, 2018, Cleco Power had a $300.0 million credit facility. The credit facility includes restrictive financial covenants and expires in 2021. The borrowing costs under Cleco Power’s credit facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%. If Cleco Power’s credit ratings were to be downgraded one level, Cleco Power could be required to pay higher fees and additional interest of 0.05% and 0.125%, respectively, under the pricing levels of its credit facility. Under covenants contained in Cleco Power’s credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2018, $831.9 million of Cleco Power’s member’s equity was unrestricted. If Cleco Power were to default under its credit facility or any other debt agreements, Cleco Holdings would be considered to be in default under its facility. At December 31, 2018, Cleco Power was in compliance with the covenants in its credit facility.