Deal Description: March 12 – Cleco Securitization II LLC (the “Issuer”), a wholly owned subsidiary of Cleco Power LLC (“Cleco Power”), closed its offering and sale of $305 million aggregate principal amount of its Series 2025-A Senior Secured Energy Transition Bonds (the “Bonds”). The Bonds were issued pursuant to a financing order issued by the Louisiana Public Service Commission (the “LPSC”) under the Louisiana Electric Utility Energy Transition Securitization Act and are secured by energy transition property, which includes the right to a special, irrevocable nonbypassable charge, known as the “energy transition charge,” paid by all existing and future LPSC jurisdictional customers of Cleco Power. 

The net proceeds from the sale of the Bonds will be paid to Cleco Power by the Issuer, who will use the net proceeds to fund a restricted energy transition reserve and to reimburse Cleco Power for energy transition costs in connection with the retirement of the Dolet Hills Power Station (the “Plant”) and the closure of the Dolet Hills and Red River Mine-Oxbow Reserve Mines that served the Plant.

J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. served as joint book running managers. 

Cleco Power is a regulated electric utility company that as of December 31, 2024 owns 8 generating units with a total rated capacity of 2,676 MW and serves approximately 295,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana.

Baker Botts L.L.P. represented Cleco Power in the offering.

Value: $305,000,000

Baker Botts Lawyers/Office Involved: 

Corporate: Tim Taylor (Partner; Houston); Jamie Yarbrough (Partner; Houston); William Stutts (Senior Counsel; Austin); Michael Mazidi (Associate; Houston); Austin Lee (Associate; Houston); Jack Hennessy (Associate; Houston)

 

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