Debt

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Debt

Note 8 — Debt

On March 12, 2025, Cleco Power completed a securitization financing of the Energy Transition Property through Cleco Securitization II. Cleco Securitization II used the net proceeds from its issuance of $305.0 million aggregate principal amount of its senior secured energy transition bonds to purchase the Energy Transition Property from Cleco Power, pay for debt issuance costs, and reimburse Cleco Power for upfront securitization costs paid by Cleco Power on behalf of Cleco Securitization II. One tranche of $100.0 million aggregate

principal amount was issued with an interest rate of 4.680% and an expected weighted average life of 5.4 years. A second tranche of $205.0 million aggregate principal amount was issued with an interest rate of 5.346% and an expected weighted average life of 15.5 years. The energy transition bonds are governed by an indenture between Cleco Securitization II and the indenture trustee. The indenture contains certain covenants that restrict Cleco Securitization II's ability to sell, transfer, convey, exchange, or otherwise dispose of its assets.

On March 14, 2025, following this securitization financing, Cleco Power repaid the outstanding balance of its $125.0 million bank term loan and the outstanding balance of its $110.0 million credit facility. In addition, Cleco Power elected to repay its $50.0 million GO Zone bonds on May 1, 2025.

At March 31, 2025, and December 31, 2024, Cleco’s and Cleco Power’s long-term debt and finance leases outstanding due within one year were $143.5 million and $264.9 million, respectively. The decrease of $121.4 million is primarily due to the repayment of Cleco Power’s $125.0 million bank term loan.