Note 5 — Debt

Short-term Debt

At March 31, 2015, and December 31, 2014, Cleco and Cleco Power had no short-term debt outstanding.

Long-term Debt

At March 31, 2015, Cleco’s long-term debt outstanding was $1.34 billion, of which $53.8 million was due within one year. The long-term debt due within one year at March 31, 2015, represents a $35.0 million bank term loan, $16.3 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 decreased $23.5 million from December 31, 2014, primarily due to a $15.0 million net decrease in credit facility draws, an $8.1 million scheduled Cleco Katrina/Rita storm recovery bond principal payment in March 2015, and a $0.5 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.1 million.

At March 31, 2015, Cleco Power’s long-term debt outstanding was $1.28 billion, of which $53.8 million was due within one year. The long-term debt due within one year at March 31, 2015, represents a $35.0 million bank term loan, $16.3 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 $28.5 million from December 31, 2014, primarily due to a $20.0 million decrease in credit facility draws, an $8.1 million scheduled Cleco Katrina/Rita storm recovery bond principal payment in March 2015, and a $0.5 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.1 million.

On April 27, 2015, Cleco Power gave notice of intention to repay its $35.0 million outstanding bank term loan due May 29, 2015. The repayment date is April 30, 2015. At December 31, 2014, Cleco Power had the intent and ability to refinance this outstanding bank term loan with other long-term debt; however, due to temporarily increased cash balances, Cleco Power has decided to repay this bank term loan early, with the intent to include it in a larger refinancing at a later date. Cleco Power has $50.0 million of 4.95% senior notes due in July 2015. While the senior notes mature in July 2015, Cleco Power has the intent and ability to refinance the debt security with long-term debt on or before its maturity date; therefore, the debt security is classified as long-term debt. Cleco Power also has $50.0 million of 2008 Series A GO Zone bonds that will be subject to remarketing in May 2015.

Credit Facilities

At March 31, 2015, Cleco Corporation had $62.0 million of borrowings outstanding under its $250.0 million credit facility at an all-in interest rate of 1.255%, leaving an available borrowing capacity of $188.0 million. 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 March 31, 2015, Cleco Power had no borrowings outstanding under its $300.0 million credit facility; however, Cleco Power has issued a $2.0 million letter of credit to MISO, leaving an available borrowing capacity of $298.0 million. The borrowing costs under the facility are equal to LIBOR plus 0.9% or ABR, plus facility fees of 0.1%. The letter of credit issued to MISO is pursuant to the credit requirements of FTRs. This letter of credit automatically renews each year and reduces Cleco Power’s credit facility capacity.