Cleco Corp. is refinancing unsecured facilities totaling $275 million via leads Bank of New York, J.P. Morgan and WestLB. The Pineville, La.-based holding company is set to initiate the effort March 22, pitching tighter pricing and longer tenors on its $150 million, three-year revolver and subsidiary Cleco Power's $125 million, 364-day line.
"It's always better to have a longer term facility," said Kathleen Nolen, treasurer. She noted that maintaining some portion in longer-tenor debt will reduce refinancing risk and lower all-in lower funding costs.
Both facilities have been extended to five years with the holding company's new credit line being pitched with facility fees of 20 basis points, down from 27.5 basis points. The revolver also will have a utilization fee of 12.5 basis points and carry an 87.5 basis point fee on drawn amounts.
Cleco Power's new line is being shopped with a 12.5 basis point facility fee, down from 20 basis points and will carry an identical utilization fee to its parent. The 100 basis point draw spread was cut to 60 basis points, according to a banker familiar with the deal.
Officials at BoNY declined to comment while calls to WestLB were not returned. A J.P. Morgan spokesman was unable to comment by press time.