Cleco Merger Arbitrage Offers Low-Risk 13% Annualized Return
Dr. Hugh Akston
Dr. Hugh Akston
Tue, Mar. 29, 9:18 AM
Tue, Mar. 29, 9:09 AM
- Cleco (NYSE:CNL) +13.3% premarket on news it won approval yesterday from Louisiana's Public Service Commission to sell itself to an investor group led by Macquarie Infrastructure and Real Assets.
- Three of the five PSC members were needed to overturn their previous rejection and approve the sale; the final vote for approval was 4-1.
- As part of the deal, CNL customers will receive ~$500 on average in rate credits, and CNL will extend the current formula rate plan and base rates for an additional two years.
- The Macquarie-led group is buying CNL at a 15% premium of ~$55.37/share, and will then take the company private.
Tue, Mar. 22, 2:34 PM
- Cleco (CNL -1.9%) withdraws its request for a rehearing before the Louisiana Public Service Commission regarding approval for its proposed sale to Maquarie Infrastructure following comments from one of the commissioners that he would not support the agreement in its current state; CNL will now state its case at a special meeting on March 28.
- The PSC rejected the sale last month; since then, CNL and Maquarie have decided to offer additional commitments that address issues raised by the PSC, such as $100M of immediate rate relief for customers and a $15M contribution to economic development in CNL's service territory.
Fri, Feb. 26, 4:38 PM
- Cleco (NYSE:CNL): Q4 EPS of $0.38 misses by $0.06.
- Revenue of $279.4M (-8.3% Y/Y) misses by $18.65M.
Thu, Feb. 25, 9:14 AM
- Cleco (NYSE:CNL) -2.7% premarket, on top of yesterday's 9.4% plunge, after Louisiana's Public Service Commission rejected a $4.9B proposed takeover by a Macquarie-led (OTC:MCQEF) investor group, saying the deal was not in the best interest of customers.
- Among their objections, commissioners cited the purchase by Australian and Canadian investors who planned to sell the utility in 8-10 years, and the “double leverage” method of financing the transaction that left open the possibility that CNL customers could be on the hook for the debt.
- The rejection comes as foreign buyers including Fortis (OTCPK:FRTSF) and Emera (OTCPK:EMRAF) are seeking approval to take over U.S. power companies, and the CNL ruling may hurt the chances of future acquisitions by non-U.S. companies.
- Shares are downgraded to Sell from Neutral at Ladenburg Thalmann on the news.
Oct. 28, 2015, 6:34 PM
- Cleco (NYSE:CNL): Q3 EPS of $0.92 misses by $0.11.
- Revenue of $345.47M (-7.0% Y/Y) misses by $36.26M.
Oct. 27, 2015, 5:35 PM
- ABX, ACGL, AEM, AF, AFFX, AFOP, AMGN, ANIK, AR, ARII, ARRS, ASGN, ATML, BANC, BLKB, BWLD, CACI, CAVM, CBL, CGI, CHDN, CLI, CMO, CMPR, CNL, CNO, CNW, CRUS, CSGP, CW, CWT, DRE, DYAX, ECHO, ELLI, EPR, EQIX, EQY, ESIO, ESRT, ESV, EXR, FFIV, FMC, FORM, FORR, FR, GPRO, HBI, HLS, HOS, HT, HUBG, HY, INT, INVN, ISIL, KEX, KRA, KS, LNC, LOCK, LOPE, MAA, MANT, MAR, MC, MEOH, MMLP, MTGE, MTW, MUR, NE, NEM, NGD, NSIT, NTRI, NVDQ, NXPI, O, OCN, OGS, OII, ORLY, OTEX, PLXS, PPC, PRXL, PSA, PTC, QDEL, QEP, QGEN, QUIK, REG, ROG, ROVI, RRC, SCI, SGI, SGMO, SIMO, SPN, SPRT, SPWR, SSS, STAA, SU, TAL, THG, THRX, TILE, TLLP, TSO, TTMI, UNM, VAR, VECO, VRTX, WDC, WES, WGP, WLL, WMB, WSTL, WTS, YELP
Jul. 27, 2015, 4:48 PM
- Cleco (NYSE:CNL): Q2 EPS of $0.53 beats by $0.02.
- Revenue of $289.1M (-6.5% Y/Y) misses by $27.95M.
Jul. 26, 2015, 5:35 PM
Apr. 28, 2015, 4:58 PM
- Cleco (NYSE:CNL): Q1 EPS of $0.46 beats by $0.02.
- Revenue of $295.5M (+3.9% Y/Y) beats by $12.45M.
Apr. 27, 2015, 5:35 PM
- ACGL, ACHC, AEGN, AFL, AHGP, AKAM, AMCC, ANIK, ARI, ARLP, AUY, AZPN, BGFV, BLDP, BMR, BOOM, BWLD, BXMT, CALX, CBL, CEB, CGI, CHE, CINF, CLF, CMRE, CNL, CRUS, DDR, DHT, EEFT, EIX, EPIQ, EPR, EQR, ESRT, ESRX, EXAC, FARO, FEIC, GNW, GPRE, GPRO, HAWK, HELE, HIW, HLIT, HURN, IACI, INAP, IPHI, KALU, KBR, KRFT, LOGM, MRCY, MSTR, MTSI, MWA, NANO, NATI, NCR, NVDQ, OHI, OI, OTEX, PEI, PNRA, RNG, RPXC, RRC, RSYS, SKT, SLCA, SWI, TAHO, TE, TPX, TSS, TWTR, ULTI, VRSK, WDC, WRI, WSH, WYNN, X, XCO, XOOM
Feb. 27, 2015, 5:07 PM
- Cleco (NYSE:CNL): Q4 EPS of $0.60 beats by $0.05.
- Revenue of $304.61M (+15.8% Y/Y)
Feb. 26, 2015, 5:35 PM
Oct. 28, 2014, 5:22 PM
- Cleco (NYSE:CNL): Q3 EPS of $1.17 in-line.
- Revenue of $371.4M (+13.0% Y/Y) beats by $30.9M.
- Shares +0.4% AH.
Oct. 20, 2014, 9:21 AM
Oct. 20, 2014, 7:26 AM
- Cleco (NYSE:CNL) agrees to be acquired by an investor group led by Macquarie Infrastructure and Real Assets in a deal that values the utility holding company at ~$4.7B including assumed debt.
- The $55.37/share offer price represents a ~15% premium to CNL's Friday closing price.
- CNL will continue to operate as an independent company led by local management and will maintain its headquarters in Louisiana.