Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
CNL > SEC Filings for CNL > Form 8-K on 26-Mar-2013All Recent SEC Filings

Show all filings for CLECO CORP | Request a Trial to NEW EDGAR Online Pro

Form 8-K for CLECO CORP


26-Mar-2013

Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation


Item 1.01 Entry into a Material Definitive Agreement.
On March 20, 2013, Cleco Power LLC ("Cleco Power"), a wholly owned subsidiary of Cleco Corporation ("Cleco"), entered into a Term Loan Agreement ("Loan Agreement") with JPMorgan Chase Bank, N.A. ("JPMorgan"). According to the Agreement, JPMorgan has committed to provide a $60 million unsecured term loan ("Term Loan") to Cleco Power. The Term Loan is to be funded by April 1, 2013, and has a maturity date of May 29, 2015. Upon Cleco Power's request, each tranche, or borrowing, under the Loan Agreement may be classified as an "ABR Tranche" or "Eurodollar Tranche," distinguishable by the applicable interest rate.

Each ABR Tranche will bear interest at the "Alternate Base Rate," plus the "Applicable Margin."

The "Alternate Base Rate" means an annual rate equal to the greatest of
(i) the applicable annual rate publicly announced by JPMorgan as its prime commercial lending rate, (ii) the Federal Funds Effective Rate in effect plus 0.5%, and (iii) the Adjusted LIBO Rate (as defined below) plus 1.0%.

The "Applicable Margin" for ABR loans is based on Cleco Power's senior debt ratings as determined by Standard & Poor's and Moody's ratings services and ranges from 0.000% (ratings of A- or A3, respectively, or higher) to 0.500% (ratings below BB+ and Ba1, respectively).

Each Eurodollar Tranche will bear interest at the "Adjusted LIBO Rate" plus the "Applicable Margin," but are subject to alternate rates of interest if the administrative agent or lenders make certain determinations.

The "Adjusted LIBO Rate" means an annual rate equal to (i) the LIBO Rate for the applicable period multiplied by (ii) the "Statutory Reserve Rate." The "LIBO Rate" generally means the rate appearing on the Dow Jones Market Service Page 3750 as the rate for dollar deposits with a maturity comparable to the applicable interest period. The "Statutory Reserve Rate" means a fraction, the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages, if any, established by the Federal Reserve board to which certain member banks are subject for eurocurrency funding.

The "Applicable Margin" is based on Cleco Power's senior debt ratings as determined by Standard & Poor's and Moody's ratings services and ranges from 0.650% (ratings of A- or A3, respectively, or higher) to 1.500% (ratings below BB+ and Ba1, respectively).

The Loan Agreement permits Cleco Power to use the proceeds of the Term Loan for general corporate purposes and to pay transaction fees and expenses. Borrowings under the facility may be prepaid at any time and from time to time along with accrued interest.

On March 1, 2013, Cleco Power made a draw on its credit facility to pay its 2007 solid waste disposal facility bonds that had a mandatory tender of March 1, 2013. Cleco Power anticipates using the proceeds of the Term Loan to pay down the draw of its credit facility.

The Loan Agreement contains a number of restrictions on the business of Cleco Power and its subsidiary, including restrictions on its ability to merge, dispose of assets, and create or incur liens on assets. The Loan Agreement also contains affirmative covenants and events of default, as well as a financial covenant under which Cleco Power may not permit its Total Indebtedness to be greater than 65% of its Total Capitalization.


The foregoing summary qualified in its entirety by reference to the complete text of the Loan Agreement, which is attached as Exhibit 10.1 to this Form 8-K and is incorporated by reference herein.



Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information required by this item is included in Item 1.01 and incorporated herein by reference.



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are filed herewith:

10.1   Term Loan Agreement dated as of March 20, 2013, by and among Cleco Power
       LLC, as borrower, the lenders party hereto, and JPMorgan Chase Bank, N.A.,
       as administrative agent.


  Add CNL to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for CNL - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial Sign Up Now


Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.