

Note 6 — Debt

Cleco

Cleco’s total indebtedness as of December 31, 2014 and 2013, was as follows:



	AT DEC. 31,
(THOUSANDS)	2014			2013
Bonds
Cleco Power’s senior notes, 4.95%, due 2015	$	50,000		$	50,000
Cleco Power’s senior notes, 6.65%, due 2018	250,000			250,000
Cleco Power’s senior notes, 4.33%, due 2027	50,000			50,000
Cleco Power’s senior notes, 6.50%, due 2035	295,000			295,000
Cleco Power’s senior notes, 6.00%, due 2040	250,000			250,000
Cleco Power’s senior notes, 5.12%, due 2041	100,000			100,000
Cleco Power’s Series A GO Zone bonds, due 2038, mandatory tender in 2015	50,000			50,000
Cleco Power’s Series B GO Zone bonds, 4.25%, due 2038	50,000			50,000
Cleco Power’s solid waste disposal facility bonds, 4.70%, due 2036, callable after November 1, 2016	60,000			60,000
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020	33,754			48,630
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023	67,600			67,600
Total bonds	1,256,354			1,271,230
Other long-term debt
Cleco Corporation’s credit facility draws	57,000			5,000
Cleco Power’s bank term loan, due 2015	35,000			35,000
Cleco Power’s credit facility draws	20,000			20,000
Barge lease obligations, ending 2017	6,873			9,179
Gross amount of long-term debt	1,375,227			1,340,409
Less: long-term debt due within one year	15,824			14,876
Less: lease obligations classified as long-term debt due within one year	2,448			2,305
Unamortized discount	(7,302		)	(7,728		)
Total long-term debt, net	$	1,349,653		$	1,315,500

The principal amounts payable under long-term debt agreements for each year through 2019 and thereafter are as follows:



YEAR ENDING DEC. 31,	(THOUSANDS)
Amounts payable under long-term debt agreements
2015	$	100,824
2016	$	16,814
2017	$	17,896
2018	$	346,193
2019	$	20,571
Thereafter	$	866,056

In addition to the Cleco Katrina/Rita bond payments due in the next 12 months, the 2015 principal amounts above include $50.0 million of 4.95% senior notes and a $35.0 million bank term loan. While both the senior notes and bank term loan have a 2015 maturity date, Cleco has the intent and ability to refinance both debt securities with long-term debt on or before their respective maturity dates; therefore, the debt securities are classified as long-term debt.

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

At December 31, 2014, Cleco’s long-term debt outstanding was $1.37 billion, of which $18.3 million was due within one year, compared to $1.33 billion outstanding at December 31, 2013, which included $17.2 million due within one year. The long-term debt due within one year at December 31, 2014, represents $15.8 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.5 million of capital lease payments.

For Cleco, long-term debt increased $35.2 million from December 31, 2013, primarily due to a $52.0 million increase in Cleco’s net credit facility draws and debt discount amortizations of $0.4 million. These increases were partially offset by $14.9 million of scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2014 and a $2.3 million decrease in capital lease obligations.

The principal amounts payable under the capital lease agreements for each year through 2017 are as follows:



YEAR ENDING DEC. 31,	(THOUSANDS)
Amounts payable under capital lease agreements
2015	$	2,448
2016	$	2,607
2017	$	1,818

Cleco Power

Cleco Power’s total indebtedness as of December 31, 2014 and 2013, was as follows:



	AT DEC. 31,
(THOUSANDS)	2014			2013
Bonds
Senior notes, 4.95%, due 2015	$	50,000		$	50,000
Senior notes, 6.65%, due 2018	250,000			250,000
Senior notes, 4.33%, due 2027	50,000			50,000
Senior notes, 6.50%, due 2035	295,000			295,000
Senior notes, 6.00%, due 2040	250,000			250,000
Senior notes, 5.12%, due 2041	100,000			100,000
Series A GO Zone bonds, due 2038, mandatory tender in 2015	50,000			50,000
Series B GO Zone bonds, 4.25%, due 2038	50,000			50,000
Solid waste disposal facility bonds, 4.70%, due 2036, callable after November 1, 2016	60,000			60,000
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020	33,754			48,630
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023	67,600			67,600
Total bonds	1,256,354			1,271,230
Other long-term debt
Bank term loan, due 2015	35,000			35,000
Credit facility draws	20,000			20,000
Barge lease obligations, ending 2017	6,873			9,179
Gross amount of long-term debt	1,318,227			1,335,409
Less: long-term debt due within one year	15,824			14,876
Less: lease obligations classified as long-term debt due within one year	2,448			2,305
Unamortized discount	(7,302		)	(7,728		)
Total long-term debt, net	$	1,292,653		$	1,310,500

The principal amounts payable under long-term debt agreements for each year through 2019 and thereafter are as follows:



YEAR ENDING DEC. 31,	(THOUSANDS)
Amounts payable under long-term debt agreements
2015	$	100,824
2016	$	16,814
2017	$	17,896
2018	$	289,193
2019	$	20,571
Thereafter	$	866,056

In addition to the Cleco Katrina/Rita bond payments due in the next 12 months, the 2015 principal amounts above include $50.0 million of 4.95% senior notes and a $35.0 million bank term loan. While both the senior notes and bank term loan have a 2015 maturity date, Cleco Power has the intent and ability to refinance both debt securities with long-term debt on or before their respective maturity dates; therefore, the debt securities are classified as long-term debt.

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

At December 31, 2014, Cleco Power’s long-term debt outstanding was $1.31 billion, which included $18.3 million was due within one year, compared to $1.33 billion outstanding at December 31, 2013, of which $17.2 million was due within one year. The long-term debt due within one year at December 31, 2014, represents $15.8 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.5 million of capital lease payments.

For Cleco Power, long-term debt decreased $16.8 million from December 31, 2013, primarily due to $14.9 million of scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2014 and a $2.3 million decrease in capital lease obligations, partially offset by debt discount amortizations of $0.4 million.

The principal amounts payable under the capital lease agreements for each year through 2017 are as follows:



YEAR ENDING DEC. 31,	(THOUSANDS)
Amounts payable under capital lease agreements
2015	$	2,448
2016	$	2,607
2017	$	1,818

Credit Facilities

At December 31, 2014, Cleco had two separate revolving credit facilities, one for Cleco Corporation and one for Cleco Power, with a maximum aggregate capacity of $550.0 million.

In October 2013, Cleco Corporation entered into a new, amended and restated $250.0 million revolving credit facility. The credit facility is set to mature on October 16, 2018, and provides for working capital and other needs. In connection with this credit facility, $1.0 million of unamortized debt expense related to Cleco Corporation’s previous credit facility was expensed. The all-in interest rate under this credit facility was equal to LIBOR plus 1.075% or ABR plus 0.075%, plus facility fees of 0.175%. At December 31, 2014, Cleco Corporation had $57.0 million borrowings outstanding under its existing credit facility at an all-in interest rate of 1.245%, leaving an available borrowing capacity of $193.0 million. Under covenants contained in Cleco Corporation’s credit facility, Cleco is required to maintain total indebtedness equal to or less than 65% of total capitalization. At December 31, 2014, $921.9 million of Cleco’s retained earnings was unrestricted. At December 31, 2014, Cleco Corporation was in compliance with the covenants in its credit facility.

In October 2013, Cleco Power entered into a new, amended and restated $300.0 million revolving credit facility. The credit facility is set to mature on October 16, 2018 and provides for working capital and other needs. Cleco Power’s all-in interest rate under this facility is equal to LIBOR plus 0.9% or ABR, plus facility fees of 0.1%. At December 31, 2014, Cleco Power had $20.0 million borrowings outstanding under its existing credit facility at an all-in interest rate of 1.07% and a $2.0 million letter of credit issued under its credit facility, leaving an available borrowing capacity of $278.0 million. The $20.0 million borrowings outstanding at December 31, 2014, were repaid on January 9, 2015. In December 2013, Cleco Power provided a $1.0 million letter of credit to MISO pursuant to the credit requirements of FTRs. On April 8, 2014, Cleco Power increased the letter of credit to $2.0 million. The letter of credit automatically renews each year and reduces Cleco Power’s credit facility capacity. Under covenants contained in Cleco Power’s credit facility, Cleco Power is required to maintain total indebtedness equal to or less than 65% of total capitalization. At December 31, 2014, $852.1 million of Cleco Power’s member’s equity was unrestricted. If Cleco Power defaults under its facility, then Cleco Corporation would be considered in default under its facility. At December 31, 2014, Cleco Power was in compliance with the covenants in its credit facility.