Dive Brief:

• Louisiana utility Cleco Corp. is on the market after an unexpected offer from Canadian firm Borealis Infrastructure prompted the utility's board to vote in favor of a sale.
• To guarantee a sale, buyers would have to provide about $3 billion in equity up front for shareholders. With $1.3 billion in outstanding debt, the deal for the utility could feasibly reach $5 billion.
• The utility has an enterprise value of $4.4 billion.

Dive Insight:

Cleco is in a great position for a sale. This week, the Louisiana Public Service Commission approved the utility's rate case, which will allow them to keep their current rate structure in place until 2020. That will allow any transaction to proceed with minimal effect on customers and service. It also guarantees potential buyers that Cleco's future earnings will remain stable and secure. Cleco's regulated utility, Cleco Power, serves about 284,000 customers in its Louisiana service territory and 3,340 megawatts of nameplate generating capacity.