Note 5 — Debt

Short-term Debt

At September 30, 2014 and December 31, 2013, Cleco and Cleco Power had no short-term debt outstanding.

Long-term Debt

At September 30, 2014, Cleco’s long-term debt outstanding was $1.34 billion, of which $18.2 million was due within one year. The long-term debt due within one year at September 30, 2014, represents $15.8 million principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.4 million of capital lease payments.

For Cleco, long-term debt increased $5.7 million from December 31, 2013, primarily due to a $22.0 million net increase in credit facility draws and debt discount amortizations of $0.3 million. These increases were partially offset by $14.9 million scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2014, and a $1.7 million decrease in capital lease obligations.

At September 30, 2014, Cleco Power’s long-term debt outstanding was $1.30 billion, of which $18.2 million was due within one year. The long-term debt due within one year at September 30, 2014, represents $15.8 million principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.4 million of capital lease payments.

For Cleco Power, long-term debt decreased $26.3 million from December 31, 2013, primarily due to $14.9 million scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2014, a $10.0 million decrease in net credit facility draws, and a $1.7 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.3 million.

Credit Facilities

At September 30, 2014, Cleco Corporation had $37.0 million of borrowings outstanding under its $250.0 million credit facility at an all-in interest rate of 1.235%. The borrowings under the credit facility are considered to be long-term because the credit facility expires in 2018. The borrowing costs under the facility are equal to LIBOR plus 1.075% or ABR plus 0.075%, plus facility fees of 0.175%.

At September 30, 2014, Cleco Power had $10.0 million of borrowings outstanding under its $300.0 million credit facility at an all-in interest rate of 1.02%. The borrowings under the credit facility are considered to be long-term because the credit facility expires in 2018. The borrowing costs under the facility are equal to LIBOR plus 0.9% or ABR, plus facility fees of 0.1%. In December 2013, Cleco Power provided a $1.0 million letter of credit to MISO pursuant to the credit requirements of FTRs. This letter of credit automatically renews each year and reduces Cleco Power’s credit facility capacity. On April 8, 2014, Cleco Power increased the letter of credit to $2.0 million.