Cleco Corp. 'BBB+' Issuer Credit Ratings Placed On CreditWatch Negative On Acquisition Agreement By Investor Consortium

Cleco Corp. has announced an agreement to be purchased by an investment consortium headed by infrastructure funds. The purchase price of approximately $4.7 billion represents a premium of 50% above utility Cleco Power LLC's book value. The parties have not indicated how the acquisition will be funded, but in previous transactions debt as well as equity has been used. Based on that track record, we are placing the ratings of both entities on CreditWatch with negative implications. Closing of the transaction could take up to one year due to regulatory reviews of the purchase and required state and federal approvals. BOSTON (Standard&Poor's) Oct. 21, 2014--Standard&Poor's Ratings Services today placed the 'BBB+' issuer credit ratings on Pineville,

...+ Cleco Corp. has announced an agreement to be purchased by an investment consortium headed by infrastructure funds. + The purchase price of approximately $4.7 billion represents a premium of 50% above utility Cleco Power LLC's book value. + The parties have not indicated how the acquisition will be funded, but in previous transactions debt as well as equity has been used. Based on that track record, we are placing the ratings of both entities on CreditWatch with negative implications. + Closing of the transaction could take up to one year due to regulatory reviews of the purchase and required state and federal approvals. BOSTON (Standard & Poor's) Oct. 21, 2014--Standard & Poor's Ratings Services today placed the '###+' issuer credit ratings on Pineville, La.-based Cleco Corp. and Cleco Power LLC and the '###+' unsecured debt rating on Cleco Power on CreditWatch with negative implications. Utility holding company Cleco announced today that it has entered into an agreement to be acquired...

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