Cleco announces sale of Cleco Cajun assets

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Nov 30, 2023, 13:54 ET

PINEVILLE, La., Nov. 30, 2023 /PRNewswire/ -- Today, Cleco Corporate Holdings LLC ("Cleco") announced that certain of its direct and indirect subsidiaries have entered into a Purchase and Sale Agreement with certain affiliates of Atlas Capital Resources IV LP ("Atlas") to sell their unregulated electric utility business, owned and operated by Cleco's wholly owned subsidiary Cleco Cajun LLC ("Cleco Cajun"), for the aggregate purchase price of $600.0 million, subject to certain customary adjustments and payment schedules.

Cleco Cajun, a direct subsidiary of Cleco, is an unregulated electric utility business that owns 14 generating units with a rated capacity of 3,379 megawatts and wholesale contracts serving nine Louisiana-based electric cooperatives.

Under the terms of the agreement, the sale will include, without limitation, all of Cleco Cajun's generating assets and wholesale cooperative contracts.

The transaction is expected to close by the second quarter of 2024 and is subject to various customary closing conditions, approvals and consents, including approvals from the Federal Energy Regulatory Commission, the Federal Communication Commission, and an antitrust review under the Hart-Scott-Rodino Act.

About Cleco
Cleco Corporate Holdings LLC is a regional energy holding company that conducts its business operations through its subsidiaries, Cleco Power LLC and Cleco Cajun LLC. Cleco Power is a regulated electric public utility company that owns nine generating units with a rated capacity of 3,035 MWs and serves approximately 293,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. Cleco Cajun is an unregulated utility company that owns 14 generating units with a rated capacity of 3,379 MWs, and wholesale contracts serving electric cooperatives, municipalities, an electric utility and a nonprofit corporation. For more information about Cleco, visit www.cleco.com.

About Atlas
Headquartered in Greenwich, Connecticut and founded in 2002, Atlas and its affiliates own and operate 27 companies, which employ more than 50,000 associates across 300 facilities worldwide. Atlas operates in sectors such as automotive, building materials, capital equipment, construction services, food manufacturing and distribution, metals processing, packaging, paper, power generation, printing, pulp, supply chain management and wood products. Atlas' companies together generate approximately $16 billion in revenues annually.

Media Contacts
Jennifer Cahill
Cleco
318-308-5175

SOURCE Cleco Corporate Holdings LLC