Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

Note 10 — Debt

Cleco Power’s total long-term indebtedness as of December 31, 2023, and 2022 was as follows:

Cleco Power
	AT DEC. 31,
(THOUSANDS)	2023		2022
Bonds
Senior notes, 3.08%, due 2023	$	—	$	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, 5.96%, due 2026	100,000		—
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 Securitization I’s storm recovery bonds, 4.016%, due 2033	115,426		125,000
Cleco Securitization I’s storm recovery bonds, 4.646%, due 2044	300,000		300,000
Total bonds	1,765,426		1,775,000
Bank term loan, variable rate, due 2024	125,000		125,000
Finance leases
Barge lease obligations	12,971		13,807
Gross amount of long-term debt and finance leases	1,903,397		1,913,807
Long-term debt due within one year	(189,389)		(109,508)
Finance leases classified as long-term debt due within one year	(925)		(836)
Unamortized debt discount	(4,178)		(4,492)
Unamortized debt issuance costs	(11,753)		(12,524)
Total long-term debt and finance leases, net	$	1,697,152	$	1,786,447

Cleco’s total long-term indebtedness as of December 31, 2023, and 2022 was as follows:

Cleco
	AT DEC. 31,
(THOUSANDS)	2023		2022
Total Cleco Power long-term debt and finance leases, net	$	1,697,152	$	1,786,447
Cleco Holdings’ long-term debt, net
Senior notes, 3.250%, due 2025	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	66,700		132,300
Long-term debt due within one year	(66,497)		(230,524)
Unamortized debt issuance costs(1)	(2,776)		(3,877)
Fair value adjustment	97,345		104,748
Total Cleco long-term debt and finance leases, net	$	3,141,924	$	3,139,094

(1) For December 31, 2023, and 2022, this amount includes unamortized debt issuance costs for Cleco Holdings of $7.0 million and $8.5 million, respectively, partially offset by deferred debt issuance costs eliminated as a result of the 2016 Merger of $4.3 million and $4.6 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 2028 and thereafter are as follows:

(THOUSANDS)	CLECO POWER		CLECO
For the year ending Dec. 31,
2024	$	189,499	$	256,199
2025 (1)	$	90,087	$	255,087
2026	$	245,699	$	780,699
2027	$	66,336	$	66,336
2028	$	216,999	$	216,999
Thereafter	$	1,081,806	$	1,731,806

(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 2028 and thereafter are as follows:

(THOUSANDS)
For the year ending Dec. 31,
2024	$	925
2025	$	1,023
2026	$	1,133
2027	$	1,253
2028	$	1,388
Thereafter	$	7,249

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

Cleco Power

At December 31, 2023, and December 31, 2022, Cleco Power’s long-term debt and finance leases due within one year was $190.3 million and $110.3 million, respectively. The increase of $80.0 million is primarily due to the reclassification of a $125.0 million bank term loan due May 2024, $50.0 million of Cleco Power’s senior notes due in December 2024, and $4.9 million of additional Cleco Securitization I storm recovery bond principal payments scheduled to be paid in 2024. These increases are offset by the refinancing of Cleco Power’s $100.0 million senior notes due in December 2023 with $100.0 million of Cleco Power’s senior notes with a maturity date of December 2026.

On December 14, 2023, Cleco Power entered into a note purchase agreement for the issuance and sale in a private placement of $100.0 million aggregate principal amount of senior notes at a fixed interest rate of 5.96% and a maturity date of December 14, 2026. The proceeds of the issuance were used to pay Cleco Power’s $100.0 million aggregate principal amount of senior notes due December 2023.

Other than Cleco Securitization I’s storm recovery bonds, all of Cleco Power’s debt outstanding at December 31, 2023, and 2022 is unsecured and unsubordinated.

Cleco

At December 31, 2023, and December 31, 2022, Cleco’s long-term debt and finance leases due within one year was $256.8 million and $340.9 million respectively. The decrease of $84.1 million is primarily due to the reclassification of Cleco Holdings’ $165.0 million senior notes as a result of the extension of the maturity date to May 2025 and the refinancing

of Cleco Power’s $100.0 million senior notes due in December 2023 with $100.0 million of Cleco Power’s senior notes with a maturity date of December 2026. These decreases were partially offset by the reclassification of Cleco Power’s $125.0 million bank term loan due in May 2024, Cleco Power’s $50.0 million senior notes due in December 2024, and $4.9 million of additional Cleco Securitization I storm recovery bond principal payments scheduled to be paid in 2024.

On May 1, 2023, Cleco Holdings amended certain terms of the supplemental indenture governing its $165.0 million senior notes due in 2023. As a result, the interest rate of the senior notes changed to a floating interest rate equal to SOFR plus 1.725% and the maturity date was extended from May 1, 2023, to May 1, 2025.

Other than Cleco Securitization I’s storm recovery bonds, all of Cleco’s debt outstanding at December 31, 2023, and 2022 is unsecured and unsubordinated.

Upon approval of the Cleco Cajun Acquisition, 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, 2023, 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, 2023, Cleco had two separate revolving credit facilities, one for Cleco Holdings in the amount of $175.0 million with $110.0 million of outstanding borrowings and one for Cleco Power in the amount of $300.0 million with no outstanding borrowings. The total of all revolving credit facilities creates a maximum aggregate capacity of $475.0 million. Cleco and Cleco Power had $64.0 million and $45.0 million, respectively, outstanding under their credit facilities at December 31, 2022. Cleco Holdings and Cleco Power had no amounts outstanding under their uncommitted lines of credit at December 31, 2023, and 2022.

On February 17, 2023, Cleco Holdings and Cleco Power amended their respective revolving credit facilities and bank term loans to transition the benchmark interest rate from LIBOR to SOFR.

Cleco Holdings’ revolving credit facility provides funding 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% of total capitalization. At December 31, 2023, Cleco Holdings was in compliance with the covenants of its revolving credit facility.

At December 31, 2023, the borrowing costs for amounts drawn under the facility were equal to SOFR plus 1.725% or ABR plus 0.625%, plus commitment fees of 0.275% paid on the unused portion of the facility. 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 funding 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% of total capitalization. At December 31, 2023, Cleco Power was in compliance with the covenants of its credit facility. At December 31, 2023, the borrowing costs for amounts drawn under the facility were equal to SOFR plus 1.35% or ABR plus 0.25%, plus commitment fees of 0.15% paid on the unused portion of the facility. 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 not to comply with certain 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 under the respective credit facility or debt agreement 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.