#USA #Senior Notes #Tender Offer #Pineville #Cleco

Cleco Corporate Holdings LLC Tender Offer Pricing Announcement

Cleco Corporate Holdings LLC has made significant strides in its financial strategy by recently announcing the pricing terms of its cash Tender Offer for its Senior Notes due 2026. On November 25, 2024, the company revealed that it plans to buy up to $175,000,000 in aggregate principal amounts of its 3.743% Senior Notes, with specific conditions outlined in their Offer to Purchase dated November 8, 2024.

Holders of these Notes are eager to understand the implications of this Tender Offer, especially since the total consideration for each $1,000 principal amount had been set at $984.51, which includes an Early Tender Premium. However, it is crucial to note that the offer comes with a cap; the company has indicated that it may purchase Notes on a pro-rata basis due to the high volume of valid tenders received before the Early Tender Time on November 22, 2024, exceeding the Maximum Acceptance Amount.

The structure of this tender process means that if Cleco purchases all Notes that were validly tendered, it would exceed the $175 million limit. Accordingly, they have defined a proration factor, projecting that approximately 79.2% of the submissions would be accepted. This could lead to many holders receiving a reduced payout based on their submitted amounts.

As the tender progresses, potential sellers need to keep in mind the expiration date of the Tender Offer, set for 5:00 PM (NYC time) on December 10, 2024. Given the current scenario, Cleco likely will not consider any tenders received after the Early Tender Time, emphasizing the urgency for holders who wish to participate.

Those who miss the early cutoff will still have a chance to tender their Notes until the expiration date, but the consideration they receive will not include the premium they might have garnered by participating early. This includes any accrued interest from the last interest payment date up to the payment date for the accepted Notes, which will occur during either the Early Settlement Date or the Final Settlement Date, depending on conditions outlined in the Offer to Purchase.

The financial community watches closely as these conditions unfold, noting how this Tender Offer might adjust market perceptions of Cleco's financial viability. Investment strategies may pivot based on the results of this tender, particularly for institutions managing large portfolios of Cleco's debt.

For further information, potential participants can consult Global Bondholder Services Corporation, the identified depositary and information agent for this Tender Offer. With dedicated communication available through their support channels, investors can clarify any details concerning their interests.

As outlined by Cleco’s management group, no recommendation is provided as to which holders should or should not participate. Holders of these notes must analyze their own positions carefully and decide how much to tender accordingly to maximize their investment's performance during this structured financial maneuver.

In summary, the initial phases of this tender process indicate a well-thought-out approach by Cleco to manage its outstanding debt effectively while maintaining shareholder engagement. As the situation progresses, it will be vital for all stakeholders to stay informed and make timely decisions to navigate this evolving financial landscape.