Note 5 — Debt

Short-term Debt

At June 30, 2015, and December 31, 2014, Cleco and Cleco Power had no short-term debt outstanding.

Long-term Debt

At June 30, 2015, Cleco’s long-term debt outstanding was $1.3 billion, of which $43.8 million was due within one year. The long-term debt due within one year at June 30, 2015, represents $25.0 million of senior notes that was repaid on July 15, 2015, $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 $69.0 million from December 31, 2014, primarily due to a $35.0 million repayment of a bank term loan in April 2015, a $25.0 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 $1.1 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.2 million.

At June 30, 2015, Cleco Power’s long-term debt outstanding was $1.25 billion, of which $43.8 million was due within one year. The long-term debt due within one year at June 30, 2015, represents $25.0 million of senior notes that was repaid on July 15, 2015, $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 $64.0 million from December 31, 2014, primarily due to a $35.0 million repayment of a bank term loan in April 2015, 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 $1.1 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.2 million.

On April 30, 2015, Cleco Power repaid its $35.0 million outstanding bank term loan due May 29, 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 a temporary increase in cash balances, Cleco Power repaid the bank term loan early, with the intent to include it in a new financing at a later date.

On May 1, 2015, Cleco Power refinanced its $50.0 million 2008 Series A GO Zone bonds and entered into a new interest rate period with a mandatory tender date of April 30, 2020. In connection with the new interest rate period, the interest rate is at a fixed rate of 2.0% per annum.

On July 15, 2015, Cleco Power repaid its $50.0 million 4.95% senior notes. As part of the redemption, Cleco Power paid $1.2 million of accrued interest. At March 31, 2015, Cleco Power had the intent and ability to refinance these outstanding senior notes with other long-term debt; however, due to available cash on July 15, 2015, the senior notes were repaid with $25.0 million of cash and $25.0 million from Cleco Power’s credit facility. Cleco Power intends to include the draw on the credit facility in a new financing at a later date.

Credit Facilities

At June 30, 2015, Cleco Corporation had $52.0 million of borrowings outstanding under its $250.0 million credit facility at an all-in interest rate of 1.225%, leaving an available borrowing capacity of $198.0 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 June 30, 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.