Note 5 — Debt

Short-term Debt

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

Long-term Debt

At September 30, 2015, Cleco’s long-term debt outstanding was $1.23 billion, of which $19.4 million was due within one year. The long-term debt due within one year at September 30, 2015, represents $16.8 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.6 million of capital lease payments. For Cleco, long-term debt decreased $141.3 million from December 31, 2014, primarily due to a $50.0 million repayment of senior notes in July 2015, a $39.0 million net decrease in credit facility borrowings outstanding, a $35.0 million repayment of a bank term loan in April 2015, $15.8 million scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2015, and a $1.8 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.3 million.

At September 30, 2015, Cleco Power’s long-term debt outstanding was $1.19 billion, of which $19.4 million was due within one year. The long-term debt due within one year at September 30, 2015, represents $16.8 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.6 million of capital lease payments. For Cleco Power, long-term debt decreased $122.3 million from December 31, 2014, primarily due to a $50.0 million repayment of senior notes in July 2015, a $35.0 million repayment of a bank term loan in April 2015, a $20.0 million net decrease in credit facility borrowings outstanding, $15.8 million scheduled Cleco Katrina/Rita storm recovery bond principal payments made in March and September 2015, and a $1.8 million decrease in capital lease obligations. These decreases were partially offset by debt discount amortizations of $0.3 million.

On April 30, 2015, Cleco Power repaid its $35.0 million outstanding bank term loan that was 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 in the fourth quarter of 2015.

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.

Credit Facilities

At September 30, 2015, Cleco Corporation had $38.0 million of borrowings outstanding under its $250.0 million credit facility at an all-in interest rate of 1.235%, leaving an available borrowing capacity of $212.0 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 September 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.