Multiple experts have told the Louisiana Public Service Commission that the proposed sale of Cleco Corp. exposes ratepayers to risks in the future, The Town Talk in Alexandria reports.
How well Cleco and the prospective new owners address those concerns over the next few months is likely the key to whether the deal happens.
Pineville-based Cleco agreed in October to a sale proposal for nearly $5 billion from an investment group led by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corporation, together with John Hancock Financial.
The sale has received other regulatory clearance and was approved by Cleco stockholders in February, leaving PSC approval as the last significant hurdle before the deal can be closed.
Commissioners have heard direct testimony and will hold hearings in November to consider approval.
“What we’ve been told is, ‘we don’t think you went far enough in addressing some of these (concerns),’” Darren Olagues, president of Cleco Power, tells The Town Talk. “We’re going to work with commission staff to try to get to a mutual agreement on these main four or five points.”
The main concern is debt and how it will affect Cleco’s operations and financial health.
In addition to $2.17 billion in equity and $1.35 billion in assumed debt, the buyers are proposing using $1.35 billion in new debt to finance the sale.
