Takeover of Cleco Power is a BAD DEAL for Louisiana - Update
Update- On Feb 24, 2016 after six hours of debate the LPSC voted on a motion to Not Approve the sale of CLECO to MACQUARIE on the grounds that the sale would not be in the best interest of Louisiana rate payers. Then at the March 16 meeting, LPSC reconsidered and voted to approve the sale.
Text of our original posting:
CLECO Power, the oldest of Louisiana’s major electric utility companies, is the target of a private equity takeover by foreign-owned investment groups who are buying up utility companies around the country. The takeover is being led by Australian based MACQUARIE Group Limited along with nearly two dozen other foreign investment groups and lenders. MACQUARIE and their partners want to buy all of CLECO’s stock using a Leveraged Buyout, where a substantial amount of new debt is taken on for the buyout, to be repaid by the company being acquired. When added to CLECO’s existing debt, customers would be on the hook for $2.8 billion of loan repayment, equal to nearly 90% of the total value of all of CLECO’s power plants. The acquiring company profits hugely from the acquisition and CLECO customers repay the debt. This is not a good deal for Louisiana ratepayers. This issue will be considered by the Louisiana Public Service Commission at a meeting in the next few months. We may need your help to contact the commissioners.
Learn more at a Community Impact meeting near you:
Wed, Oct 21 at 12pm (lunch served), two locations:
Central Louisiana Business Incubator
1501 Wimbledon Boulevard
Madisonville Town Hall
403 St. Francis Street
The proposed takeover of Cleco Power led by the Macquarie Group poses significant financial risks to customers throughout the state of Louisiana. We have developed a report that is proof positive that if this deal goes through, customers who already pay the highest rates in the state would be exposed to an array of serious financial risks that we haven’t seen since the Great Depression. Please come to an event closest to you to learn more.
Invite Link Here: https://www.eventbrite.com/e/our-cleco-community-impact-town-hall-ticket...
Click on the attachments to see information that has been researched by our friends at the Alliance for Affordable Energy.
|Cleco 2 pager.pdf||1.59 MB|
|Cleco service territory map 2012.jpg||464.59 KB|