Note 5 — Debt

Short-term Debt

At March 31, 2016, and December 31, 2015, Cleco and Cleco Power had no short-term debt outstanding.

Long-term Debt

At March 31, 2016, Cleco’s long-term debt outstanding was $1.27 billion, of which $20.0 million was due within one year. The long-term debt due within one year at March 31, 2016, represents $17.3 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.7 million of capital lease payments. For Cleco, long-term debt decreased $15.9 million from December 31, 2015, primarily due to an $8.5 million scheduled Cleco Katrina/Rita storm recovery bond principal payment made in March 2016, a $7.0 million net decrease in credit facility borrowings outstanding, and a $0.7 million decrease in capital lease obligations. These decreases were partially offset by debt issuance cost and debt discount amortizations of $0.3 million.

In connection with the Merger on April 13, 2016, Cleco Holdings issued $1.35 billion of variable rate debt. The variable rate debt has a three-year term. Cleco Holdings intends to refinance the variable rate debt with long-term financing, markets permitting, within 12 months of the Merger closing.

At March 31, 2016, Cleco Power’s long-term debt outstanding was $1.24 billion, of which $20.0 million was due within one year. The long-term debt due within one year at March 31, 2016, represents $17.3 million of principal payments for the Cleco Katrina/Rita storm recovery bonds and $2.7 million of capital lease payments. For Cleco Power, long-term debt decreased $8.9 million from December 31, 2015, primarily due to an $8.5 million scheduled Cleco Katrina/Rita storm recovery bond principal payment made in March 2016 and a $0.7 million decrease in capital lease obligations. These decreases were partially offset by debt issuance cost and debt discount amortizations of $0.3 million.

Credit Facilities

At March 31, 2016, Cleco Holdings had $27.0 million of borrowings outstanding under its $250.0 million credit facility at an all-in interest rate of 1.475%, leaving an available borrowing capacity of $223.0 million. The borrowings under the credit facility were considered to be long-term because the credit facility was set to expire in 2018. On April 13, 2016, in connection with the completion of the Merger, the $27.0 million draw was repaid and the credit facility was replaced with a new $100.0 million credit facility. The new credit facility has similar terms as the previous facility and expires in 2021. The borrowing costs under Cleco Holdings’ new credit facility are equal to LIBOR plus 1.75% or ABR plus 0.75%, plus facility fees of 0.275%. On May 4, 2016, Cleco Holdings had no borrowings outstanding under its new $100.0 million credit facility.

At March 31, 2016, Cleco Power had no borrowings outstanding under its $300.0 million credit facility; however, Cleco Power had a $2.0 million letter of credit issued to MISO, leaving an available borrowing capacity of $298.0 million. On April 13, 2016, in connection with the completion of the Merger, Cleco Power’s credit facility was replaced with a new $300.0 million credit facility. The new credit facility has similar terms as the previous facility and expires in 2021. The borrowing costs under Cleco Power’s new credit facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus facility fees of 0.125%. Upon completion of the Merger on April 13, 2016, the $2.0 million letter of credit issued to MISO is covered under a standing letter of credit and does not reduce the borrowing capacity of Cleco Power’s new credit facility. On May 4, 2016, Cleco Power had no borrowings outstanding under its new $300.0 million credit facility.