Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

Note 9 — Debt

Cleco Power’s total long-term indebtedness as of December 31, 2021, and 2020 was as follows:

Cleco Power
	AT DEC. 31,
(THOUSANDS)	2021		2020
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
Senior notes, floating rate, due 2023	325,000		—
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
Total bonds	1,700,000		1,375,000
Bank term loan, variable rate, due 2024	125,000		125,000
Finance leases
Barge lease obligations	14,562		15,244
Gross amount of long-term debt and finance leases	1,839,562		1,515,244
Long-term debt due within one year	(25,000)		—
Finance leases classified as long-term debt due within one year	(755)		(682)
Unamortized debt discount	(4,746)		(5,053)
Unamortized debt issuance costs	(8,207)		(7,252)
Total long-term debt and finance leases, net	$	1,800,854	$	1,502,257

Cleco’s total long-term indebtedness as of December 31, 2021, and 2020 was as follows:

Cleco
	AT DEC. 31,
(THOUSANDS)	2021		2020
Total Cleco Power long-term debt and finance leases, net	$	1,800,854	$	1,502,257
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 2024	200,000		266,000
Long-term debt due within one year	(67,700)		(66,000)
Unamortized debt issuance costs(1)	(5,271)		(6,423)
Fair value adjustment	112,150		119,553
Total Cleco long-term debt and finance leases, net	$	3,390,033	$	3,165,387

(1) For December 31, 2021, and 2020, this amount includes unamortized debt issuance costs for Cleco Holdings of $10.2 million and $11.7 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $4.9 million and $5.3 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 2026 and thereafter are as follows:

(THOUSANDS)	CLECO POWER		CLECO
For the year ending Dec. 31,
2022	$	25,000	$	25,000
2023	$	425,000	$	590,000
2024	$	175,000	$	375,000
2025(1)	$	75,000	$	75,000
2026	$	130,000	$	665,000
Thereafter	$	995,000	$	1,645,000

(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 2026 and thereafter are as follows:

(THOUSANDS)	CLECO POWER		CLECO
For the year ending Dec. 31,
2022	$	755	$	755
2023	$	836	$	836
2024	$	925	$	925
2025	$	1,023	$	1,023
2026	$	1,133	$	1,133
Thereafter	$	9,890	$	9,890

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

Cleco Power Debt

At December 31, 2021, Cleco Power had no short-term debt outstanding under its $300.0 million revolving credit facility. Cleco Power had $75.0 million of short-term debt outstanding at December 31, 2020 under its revolving credit facility. 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, 2021.

At December 31, 2021, Cleco Power’s long-term debt and finance leases outstanding was $1.83 billion, of which $25.8 million was due within one year. The amount due within one year primarily represents $25.0 million of senior notes due in December 2022.

On May 21, 2021, Cleco Power entered into a $125.0 million term loan agreement. This agreement replaced Cleco Power’s existing term loan agreement. This agreement matures on May 21, 2024, and has an interest rate of LIBOR plus 1.25% or ABR plus 0.25%.

On September 10, 2021, Cleco Power completed the issuance and private sale of $325.0 million aggregate principal amount of its floating rate senior notes due in 2023. The senior notes include an optional redemption, in whole or in part, at any time on or after March 15, 2022, at 100% of the principal amount of the senior notes. The senior notes bear interest at a rate of three-month LIBOR plus 50 basis points per annum and reset quarterly. The net proceeds from the issuance were used for general limited liability company purposes, including the repayment of borrowings under Cleco Power’s revolving credit agreement. The senior notes are governed by an indenture entered into between Cleco Power and a trustee. The indenture contains certain customary covenants that restrict Cleco Power’s ability to merge, consolidate or transfer or lease all or substantially all of its assets or create or incur certain liens securing indebtedness.

All of Cleco Power’s debt outstanding at December 31, 2021, and 2020, is unsecured and unsubordinated.

Cleco Debt

At December 31, 2021, Cleco had no short-term debt outstanding under its $475.0 million revolving credit facilities. Cleco had $75.0 million of short-term debt outstanding at December 31, 2020 under its revolving credit facility. For more information on Cleco’s revolving credit facilities, see “— Credit Facilities.”

At December 31, 2021, Cleco’s long-term debt and finance leases outstanding was $3.48 billion, of which $93.5 million was due within one year. The long-term debt due within one year at December 31, 2021, primarily represents $67.7 million of principal payments on Cleco Holdings’ debt as required by the Cleco Cajun Transaction commitments to the LPSC, as well as $25.0 million of Cleco Power’s senior notes due in December 2022.

On May 21, 2021, Cleco Holdings entered into a $266.0 million term loan agreement. This agreement replaced Cleco Holdings’ existing term loan agreement. This agreement matures on May 21, 2024 and has an interest rate of LIBOR plus 1.625% or ABR plus 0.625%.

All of Cleco’s debt outstanding at December 31, 2021, and 2020, is unsecured and unsubordinated.

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, 2021, 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, 2021, 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 no outstanding borrowings. These revolving credit agreements were entered into on May 21, 2021, and replaced the respective existing agreements. The total of all revolving credit facilities creates a maximum aggregate capacity of $475.0 million.

Cleco Holdings’ revolving credit facility provides for working capital and other financing needs. The revolving credit facility includes restrictive financial covenants and expires in May 2026. Under covenants contained in Cleco Holdings’ revolving credit facility, Cleco is required to maintain total indebtedness less than or equal to 65.0% of total capitalization. At December 31, 2021, Cleco Holdings was in compliance with the covenants of its revolving credit facility. At December 31, 2021, the borrowing costs under the facility were equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275%. If Cleco Holdings’ credit ratings were to be downgraded one level by the credit rating agencies, Cleco Holdings may be required to pay incremental interest and commitment fees of 0.125% and 0.05%, respectively, under the pricing levels of its revolving credit facility.

Cleco Power’s revolving credit facility provides for working capital and other financing needs. The revolving credit facility includes restrictive financial covenants and expires in May 2026. Under covenants contained in Cleco Power’s revolving credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65.0% of total capitalization. At December 31, 2021, Cleco Power was in compliance with the covenants of its credit facility. At December 31, 2021, 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 incremental interest and commitment fees of 0.125% and 0.025%, respectively, 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.