Cleco Corporate Holdings LLC Announces Capped Cash Tender Offer for 3.743% Senior Notes due 2026

PINEVILLE, La., Nov. 8, 2024 /PRNewswire/ -- Cleco Corporate Holdings LLC ("Cleco") today announced that it has commenced an offer to purchase for cash (the "Tender Offer") up to $175,000,000 aggregate principal amount (as such amount may be increased or decreased by Cleco pursuant to the terms of the Tender Offer, the "Maximum Acceptance Amount") of its 3.743% Senior Notes due 2026 (the "Notes"). The Tender Offer is made upon the terms and subject to the conditions set forth in the offer to purchase dated November 8, 2024 (as it may be amended or supplemented from time to time, the "Offer to Purchase").

The Tender Offer will expire at 5:00 p.m., New York City time, on December 10, 2024, unless extended (such time and date, as the same may be extended, the "Expiration Time") or earlier terminated by Cleco in its sole discretion.

Subject to the terms and conditions of the Tender Offer, Holders (as defined in the Offer to Purchase) who validly tender and do not validly withdraw their Notes at or prior to 5:00 p.m., New York City time, on November 22, 2024 (the "Early Tender Time") will be eligible to receive consideration, per $1,000 principal amount, equal to the Total Consideration (as defined in the Offer to Purchase) for such Notes tendered and accepted for purchase. The Total Consideration includes the Early Tender Premium set forth in the table below. Holders must validly tender and not validly withdraw their Notes at or prior to the Early Tender Time in order to be eligible to receive the Total Consideration for such Notes purchased pursuant to the Tender Offer. Subject to the terms and conditions of the Tender Offer, Holders who validly tender and do not validly withdraw their Notes after the Early Tender Time and at or prior to the Expiration Date will only be eligible to receive consideration, per $1,000 principal amount, equal to the Total Consideration less the Early Tender Premium (the "Tender Offer Consideration") for such Notes tendered and accepted for purchase. The Total Consideration and Tender Offer Consideration will be determined at 2:00 p.m., New York City time, on November 25, 2024, unless extended by Cleco. In addition to the Tender Offer Consideration or the Total Consideration (as applicable), Holders whose Notes are purchased pursuant to the Tender Offer will receive any accrued and unpaid interest (rounded to the nearest cent) on such purchased Notes from, and including, the immediately preceding interest payment date to, but excluding, the date of payment for Notes validly tendered, which date of payment shall be, subject to satisfaction or waiver of the conditions set forth in the Offer to Purchase, the Early Settlement Date (as defined below) or the Final Settlement Date (as defined below).

Holders who tender their Notes may withdraw such Notes at any time prior to 5:00 p.m., New York City time, on November 22, 2024 (such time and date, as the same may be extended, the "Withdrawal Deadline"), but not thereafter, by following the procedures described in the Offer to Purchase. The following table sets forth certain terms of the Tender Offer:

(1) For each $1,000 principal amount of Notes tendered at or prior to the Early Tender Time and accepted for purchase; included in the Total Consideration for the Notes.

Notes may be subject to proration if the aggregate principal amount of the Notes validly tendered and not validly withdrawn as of the Early Tender Time or the Expiration Time, as applicable, is greater than the Maximum Acceptance Amount. Furthermore, Notes tendered at or prior to the Early Tender Time will be accepted for purchase in priority to Notes tendered after the Early Tender Time, and to the extent Notes are tendered at or prior to the Early Tender Time and accepted for purchase pursuant to the Tender Offer, the portion of the Maximum Acceptance Amount available for the purchase of Notes tendered after the Early Tender Time will be reduced or may be eliminated completely. In the event any Notes tendered pursuant to the Tender Offer are not accepted for purchase due to proration, they will be promptly returned or credited to the tendering Holder's account in The Depository Trust Company.

Cleco reserves the right, but is under no obligation, at any point following the Early Tender Time and before the Expiration Time, to accept Notes that have been validly tendered and not validly withdrawn for purchase on a date determined at the option of Cleco (such date, if any, the "Early Settlement Date"). Cleco currently expects the Early Settlement Date, if any, to occur on November 27, 2024. If Cleco chooses to exercise its option to have an Early Settlement Date, it will purchase any remaining Notes that have been validly tendered and not validly withdrawn after the Early Tender Time and at or prior to the Expiration Time, subject to all conditions to the Tender Offer having been satisfied or waived by Cleco and subject to the Maximum Acceptance Amount, on a final settlement date (the "Final Settlement Date"), if any, expected to occur promptly following the Expiration Time. The Final Settlement Date, if any, is expected to be December 13, 2024, unless extended by Cleco. No tenders of Notes submitted after the Expiration Time will be valid.

Cleco expressly reserves the right, but is not obligated, to increase or decrease the Maximum Acceptance Amount in its sole discretion without extending the Withdrawal Deadline or otherwise reinstating withdrawal rights of Holders, subject to applicable law.

The obligation of Cleco to accept for purchase, and to pay for, Notes that are validly tendered and not validly withdrawn pursuant to the Tender Offer is conditioned on the satisfaction or waiver by Cleco of a number of conditions as described in the Offer to Purchase. Subject to applicable law and the terms and conditions of the Offer to Purchase, Cleco may terminate the Tender Offer, waive any or all of the conditions of the Tender Offer prior to the Expiration Time, extend the Expiration Time or amend the terms of the Tender Offer.

From time to time in the future, Cleco may acquire Notes that are not purchased in the Tender Offer through open market purchases, privately negotiated transactions, tender offers, exchange offers or otherwise, upon such terms and at such prices as we may determine, which may be more or less than any price to be paid pursuant to the Tender Offer and could be for cash or other consideration. Alternatively, Cleco may redeem any or all of the Notes not purchased pursuant to the Tender Offer in accordance with the terms of the indenture governing the Notes. There can be no assurance as to which, if any, of these alternatives (or combinations thereof) we may choose to pursue in the future.

The complete terms and conditions of the Tender Offer are described in the Offer to Purchase, a copy of which may be obtained from Global Bondholder Services Corporation, the depositary and information agent for the Tender Offer, by calling (212) 430-3774 (collect) or (855) 654-2015 (toll free).

Cleco has retained CIBC World Markets Corp. as the dealer manager for the Tender Offer. Questions regarding the terms of the Tender Offer may be directed to the Liability Management Group of CIBC World Markets Corp. by calling (212) 455-6427 (collect) or (800) 282-0822 (toll free) or by email at [email protected].

None of Cleco, the dealer manager, the depositary and the information agent, nor any manager, director, officer, employee, agent or affiliate thereof is making any recommendation as to whether or not holders of the Notes should tender all or any portion of their Notes in the Tender Offer. Holders must make their own decision as to whether to tender Notes and, if so, the principal amount of the Notes to tender.

This announcement is not an offer to purchase or a solicitation of an offer to sell with respect to any securities. The Tender Offer is being made solely by the Offer to Purchase. The Tender Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In those jurisdictions where the securities, blue sky or other laws require the Tender Offer to be made by a licensed broker or dealer and the Dealer Manager or any of the Dealer Manager's affiliates is such a licensed broker or dealer in any such jurisdiction, the Tender Offer shall be deemed to be made by such Dealer Manager or affiliate, as the case may be, on behalf of Cleco in such jurisdiction.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as "will," "if ," "expect" or other similar expressions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, risks relating to the conditions in financial markets, risks relating to the terms and timing for completion of the Tender Offer, including the acceptance for purchase of any Notes validly tendered and the expected expiration time and the satisfaction or waiver of certain conditions of the Tender Offer, and other risk factors as detailed from time to time in Cleco's reports filed with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

About Cleco

Cleco Corporate Holdings LLC is a regional energy holding company that conducts its business operations through Cleco Power LLC, a regulated electric utility company that owns eight generating units with a rated capacity of 2,676 MWs and serves approximately 295,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana. 

Media Contacts

Jennifer Cahill
Cleco
318-308-5175

SOURCE Cleco Corporate Holdings LLC