Debt

12 Months Ended

Dec. 31, 2020

Note 9 — Debt

Cleco Power’s total long-term indebtedness as of December 31, 2020, and 2019 was as follows:


Cleco Power
	AT DEC. 31,
(THOUSANDS)	2020		2019
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		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, 2.50%, due 2038, mandatory tender in 2025	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	—		11,055
Total bonds	1,375,000		1,386,055
Bank term loan, variable rate, due 2022	125,000		—
Finance leases


Barge lease obligations	15,244		15,861
Gross amount of long-term debt and finance leases	1,515,244		1,401,916
Less: long-term debt due within one year	—		60,970
Less: finance leases classified as long-term debt due within one year	682		617
Unamortized debt discount	(5,053)		(5,368)
Unamortized debt issuance costs	(7,252)		(7,589)
Total long-term debt and finance leases, net	$	1,502,257	$	1,327,372

Cleco’s total long-term indebtedness as of December 31, 2020, and 2019 was as follows:


Cleco
	AT DEC. 31,
(THOUSANDS)	2020		2019
Total Cleco Power long-term debt and finance leases, net	$	1,502,257	$	1,327,372
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, 3.375%, due 2029	300,000		300,000
Senior notes, 4.973%, due 2046	350,000		350,000
Bank term loan, variable rate, due 2022	266,000		300,000
Bank term loan, variable rate, due 2022	—		30,000

Long-term debt due within one year	(66,000)		(64,398)
Unamortized debt issuance costs(1)	(6,423)		(6,271)
Fair value adjustment	119,553		127,976
Total Cleco long-term debt and finance leases, net	$	3,165,387	$	3,064,679

(1) For December 31, 2020, and 2019, this amount includes unamortized debt issuance costs for Cleco Holdings of $11.7 million and $11.9 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $5.3 million and $5.6 million, respectively. For more information, see Note 6 — “Regulatory Assets and Liabilities — Cleco Holdings’ 2016 Merger Adjustments.”

The principal amounts payable under long-term debt agreements for each year through 2025 and thereafter are as follows:


(THOUSANDS)	CLECO		CLECO POWER
For the year ending Dec. 31,
2021	$	—	$	—
2022	$	416,000	$	150,000
2023	$	265,000	$	100,000
2024	$	50,000	$	50,000
2025(1)	$	75,000	$	75,000
Thereafter	$	2,310,000	$	1,125,000

(1) Does not include Series A GO Zone bonds that have a maturity date of December 2038 but a mandatory tender in May 2025.

The principal amounts payable under the finance lease agreement for each year through 2025 and thereafter are as follows:


(THOUSANDS)	CLECO		CLECO POWER
For the year ending Dec. 31,
2021	$	682	$	682
2022	$	755	$	755
2023	$	836	$	836
2024	$	925	$	925
2025	$	1,023	$	1,023
Thereafter	$	11,023	$	11,023

For more information on the finance agreement, see Note 4 — “Leases — Finance Lease.”

Cleco Power Debt

At December 31, 2020, Cleco Power had $75.0 million of short-term debt outstanding under its $300.0 million revolving credit facility, at an all-in interest rate of 1.40%. For more information on Cleco Power’s revolving credit facility, see “— Credit Facilities.” There were no amounts outstanding under the

uncommitted line of credit at December 31, 2020. Cleco Power had no short-term debt outstanding at December 31, 2019.

At December 31, 2020, Cleco Power’s long-term debt and finance leases outstanding was $1.50 billion, of which $0.7 million was due within one year. The amount due within one year represents the amount due on the finance lease with Savage Inland Marine. For more information on this finance agreement, see Note 4 — “Leases — Finance Lease.”

On March 2, 2020, Cleco Power completed the repayment of its Cleco Katrina/Rita storm recovery bonds issued in March 2008.

On May 1, 2020, Cleco Power repriced at a mandatory tender date its $50.0 million 2008 Series A GO Zone bonds and entered into a new interest rate period with a mandatory tender date of May 1, 2025. The interest rate for the new interest rate period is fixed at 2.50% per annum.

On August 28, 2020, Cleco Power entered into a $125.0 million variable rate bank term loan due June 28, 2022. Amounts outstanding under the bank term loan bear interest at a base rate plus 0.250% or LIBOR plus 1.25%. At December 31, 2020, the all-in interest rate under the term loan was 1.40%, which was based on LIBOR.

Cleco Debt

At December 31, 2020, Cleco had $75.0 million of short-term debt outstanding under its $475.0 million revolving credit facilities, at an all-in interest rate of 1.40%. As a result of the COVID-19 pandemic, Cleco has implemented certain measures that it believes will provide financial flexibility and help Cleco maintain liquidity. For additional discussion regarding certain risks associated with the COVID-19 pandemic, see Part I, Item 1A “Risk Factors — Operational Risks — COVID-19.” Cleco had no short-term debt outstanding at December 31, 2019.

At December 31, 2020, Cleco’s long-term debt and finance leases outstanding was $3.23 billion, of which $66.7 million was due within one year. The long-term debt due within one year at December 31, 2020, primarily represents $66.0 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC.

On September 11, 2019, Cleco Holdings completed the private placement of $300.0 million aggregate principal amount of its 3.375% senior notes due September 15, 2029. The proceeds from the issuance were used to repay the remaining amounts due under the $300.0 million bridge loan agreement and to repay a portion of the $100.0 million term loan agreement, both entered into in connection with the Cleco Cajun Transaction. On July 14, 2020, Cleco Holdings completed an exchange offer for its outstanding 3.375% senior notes, which were not registered under the Securities Act of 1933, as amended, for an equal principal amount of newly issued 3.375% senior notes due September 15, 2029, that were so registered. Cleco Holdings did not receive any proceeds from the exchange offer.

Upon approval of the Cleco Cajun Transaction, commitments were made to the LPSC by Cleco, including repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. As of December 31, 2020, Cleco Holdings was in compliance with these commitments. The cumulative minimum principal amounts committed to be repaid for each year through 2024 are as follows:


(THOUSANDS)
For the year ending Dec. 31,
2019	$	66,700
2020	$	133,300
2021	$	200,000
2022	$	267,700
2023	$	333,300
2024	$	400,000

Credit Facilities

At December 31, 2020, Cleco had two separate revolving credit facilities, one for Cleco Holdings in the amount of $175.0 million with no outstanding borrowings and one for Cleco Power in the amount of $300.0 million with outstanding borrowings of $75.0 million. The total of all revolving credit facilities creates a maximum aggregate capacity of $475.0 million with outstanding borrowings of $75.0 million.

On May 15, 2020, Cleco Holdings entered into amendments for its revolving credit agreement. These amendments extend the terms of its revolving credit facility through June 2022. Under covenants contained in Cleco Holdings’ revolving credit facility, Cleco is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2020, Cleco Holdings was in compliance with the covenants of its revolving credit facility. At December 31, 2020, the borrowing costs under the facility were equal to LIBOR plus 1.875% or ABR plus 0.875%, plus commitment fees of 0.30%. If Cleco Holdings’ credit ratings were to be downgraded one level by the credit rating agencies, Cleco Holdings may be required to pay higher fees and additional interest of 0.50% under the pricing levels of its revolving credit facility.

On May 15, 2020, Cleco Power entered into an amendment for its revolving credit agreement. This amendment extends the term of the revolving credit facility through 2022. Under covenants contained in Cleco Power’s revolving credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2020, Cleco Power was in compliance with the covenants of its credit facility. At December 31, 2020, the borrowing costs under the facility were equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15%. If Cleco Power’s credit ratings were to be downgraded one level by the credit rating agencies, Cleco Power may be required to pay higher fees and additional interest of 0.125% under the pricing levels of its revolving credit facility.

If Cleco Holdings or Cleco Power were to default under the covenants in their respective revolving credit facilities or other debt agreements, they would be unable to borrow additional funds under the facilities, and the lenders could accelerate all principal and interest outstanding. Further, if Cleco Power were to default under its revolving credit facility or other debt agreements, Cleco Holdings would be considered in default under its revolving credit facility.