Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 7 — Debt

At September 30, 2022, Cleco Holdings had $10.0 million of outstanding borrowings under its $175.0 million revolving credit facility at an all-in interest rate of 4.195%. At September 30, 2022, the borrowing costs for amounts drawn under Cleco Holdings’ revolving credit facility were equal to LIBOR plus 1.625% or ABR plus 0.625%, plus commitment fees of 0.275% paid on the unused portion of the facility.

In May 2022, Cleco Holdings’ $165.0 million senior notes due in May 2023 became due within one year. This amount is reflected in long-term debt due within one year on Cleco’s Condensed Consolidated Balance Sheet at September 30, 2022.

At September 30, 2022, Cleco Power had $77.0 million of outstanding borrowings under its $300.0 million revolving credit facility at a weighted average all-in interest rate of 4.33%. At September 30, 2022, the borrowing costs for amounts drawn under the facility were equal to LIBOR plus 1.25% or ABR plus 0.25%, plus commitment fees of 0.15% paid on the unused portion of the facility.

On June 22, 2022, Cleco Securitization I issued $425.0 million aggregate principal amount of its senior secured storm recovery bonds. The storm recovery bonds were issued in two tranches. One tranche of $125.0 million aggregate principal amount was issued with an interest rate of 4.016% and an expected weighted average life of 4.79 years. A second tranche of $300.0 million aggregate principal amount was issued with an interest rate of 4.646% and an expected weighted average life of 15 years. The bonds are governed by an indenture between Cleco Securitization I and the indenture trustee. The indenture contains certain covenants that restrict Cleco Securitization I’s ability to sell, transfer, convey, exchange, or otherwise dispose of its assets. At September 30,

2022, $9.6 million of this newly issued debt was included in long-term debt due within one year on Cleco’s and Cleco Power’s Condensed Consolidated Balance Sheets. For more information on the storm securitization financing, see Note 17 — “Storm Securitization and Cost Recovery.”On June 23, 2022, following the closing of the storm recovery bonds, Cleco Power redeemed its $325.0 million floating rate senior notes issued in September 2021 at par.