

Note 7 — Debt

Cleco Power’s total indebtedness as of December 31, 2017, and 2016 was as follows:



Cleco Power
	AT DEC. 31,
(THOUSANDS)	2017			2016
Bonds
Senior notes, 2.94%, due 2022	$	25,000		$	—
Senior notes, 3.08%, due 2023	100,000			—
Senior notes, 3.68%, due 2025	75,000			75,000
Senior notes, 3.47%, due 2026	130,000			130,000
Senior notes, 4.33%, due 2027	50,000			50,000
Senior notes, 3.57%, due 2028	200,000			200,000
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, 2.00%, due 2038, mandatory tender in 2020	50,000			50,000
Series B GO Zone bonds, 4.25%, due 2038	50,000			50,000
Cleco Katrina/Rita’s storm recovery bonds, 4.41%, due 2020	—			1,115
Cleco Katrina/Rita’s storm recovery bonds, 5.61%, due 2023	50,819			67,600
Total bonds	1,375,819			1,268,715
Other long-term debt
Barge lease obligations	—			1,819
Gross amount of long-term debt	1,375,819			1,270,534
Less: long-term debt due within one year	19,193			17,896
Less: lease obligations classified as long-term debt due within one year	—			1,819
Unamortized debt discount	(6,010		)	(6,342		)
Unamortized debt issuance costs	(9,141		)	(9,421		)
Total long-term debt, net	$	1,341,475		$	1,235,056

Cleco’s total indebtedness as of December 31, 2017, and 2016 was as follows:



Cleco
	AT DEC. 31,
(THOUSANDS)	2017			2016
Total Cleco Power long-term debt, net	$	1,341,475		$	1,235,056
Cleco Holdings’ long-term debt, net
Senior notes, 3.250%, due 2023	165,000			165,000
Senior notes, 3.743%, due 2026	535,000			535,000
Senior notes, 4.973%, due 2046	350,000			350,000
Bank term loan, variable rate, due 2021	300,000			300,000
Unamortized debt issuance costs	(2,516		)	(2,261		)
Fair value adjustment	147,146			155,776
Total Cleco long-term debt, net	$	2,836,105		$	2,738,571

The principal amounts payable under long-term debt agreements for each year through 2022 and thereafter are as follows:



(THOUSANDS)	CLECO		CLECO POWER
For the year ending Dec. 31,
2018	$	19,193	$	19,193
2019	$	20,571	$	20,571
2020	$	11,055	$	11,055
2021	$	300,000	$	—
2022	$	25,000	$	25,000
Thereafter	$	2,350,000	$	1,300,000

Cleco Power Debt

Cleco Power had no short-term debt outstanding at December 31, 2017, and 2016.

At December 31, 2017, Cleco Power’s long-term debt outstanding was $1.36 billion, of which $19.2 million was due within one year. The long-term debt due within one year at December 31, 2017, represents principal payments for the Cleco Katrina/Rita storm recovery bonds.

On March 1, 2017, Cleco Power completed the repayment of the first of two tranches of its Cleco Katrina/Rita storm recovery bonds issued in March 2008. The total principal amount for both tranches was $180.6 million. The first tranche had an initial principal amount of $113.0 million at an interest rate of 4.41% and a final maturity date of March 1, 2020. As part of the early redemption on March 1, 2017, Cleco paid $1.1 million in principal and less than $0.1 million in accrued interest.

On December 18, 2017, Cleco Power entered into a note purchase agreement for the issuance and sale in a private placement of $175.0 million aggregate principal amount of senior notes. The senior notes will be issued in two tranches. The first tranche was issued on December 18, 2017, with principal amounts of $25.0 million at an interest rate of 2.94% and $100.0 million at an interest rate of 3.08%, with final maturity dates of December 16, 2022, and 2023, respectively. The second tranche is anticipated to be issued on March 26, 2018, for $50.0 million at an interest rate of 3.17%, with a final maturity date of December 16, 2024. The proceeds from the issuance and sale were used and are anticipated to be used for capital investments and general utility purposes.

Cleco Debt

Cleco had no short-term debt outstanding at December 31, 2017, and 2016.

At December 31, 2017, Cleco’s long-term debt outstanding was $2.86 billion, of which $19.2 million was due within one year. The long-term debt due within one year at December 31, 2017, represents principal payments for the Cleco Katrina/Rita storm recovery bonds.

In May 2016, Cleco Holdings completed the private sale of $535.0 million of aggregate principal of its 3.743% senior notes due May 1, 2026, and $350.0 million aggregate principal amount of its 4.973% senior notes due May 1, 2046. The proceeds from the issuance and sale of these notes were used to repay a portion of the $1.35 billion Acquisition Loan Facility entered into in connection with the completion of the Merger. On April 28, 2017, Cleco Holdings completed an exchange offer for all of its then outstanding 3.743% and 4.973% senior notes, which were not registered under the Securities Act, for an equal principal amount of newly issued 3.743% senior notes due May 1, 2026, and 4.973% senior notes due May 1, 2046, that were registered under the Securities Act. Cleco Holdings did not receive any proceeds from the exchange offer.

Credit Facilities

At December 31, 2017, Cleco had two separate revolving credit facilities, one for Cleco Holdings and one for Cleco Power, with a maximum aggregate capacity of $400.0 million.

At December 31, 2017, Cleco Power had no borrowings outstanding under its $300.0 million credit facility. The credit facility includes restrictive financial covenants and expires in 2021. The borrowing costs under Cleco Power’s credit facility are equal to LIBOR plus 1.125% or ABR plus 0.125%, plus commitment fees of 0.125%. Under covenants contained in Cleco Power’s credit facility, Cleco Power is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2017, $888.9 million of Cleco Power’s member’s equity was unrestricted. If Cleco Power were to default under its credit facility or any other debt agreements, Cleco Holdings would be considered to be in default under its facility. At December 31, 2017, Cleco Power was in compliance with the covenants in its credit facility.

At December 31, 2017, Cleco Holdings had no borrowings outstanding under its $100.0 million credit facility. The credit facility includes restrictive financial covenants 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 commitment fees of 0.275%. Under covenants contained in Cleco Holdings’ credit facility, Cleco is required to maintain total indebtedness less than or equal to 65% of total capitalization. At December 31, 2017, $721.5 million of Cleco’s member’s equity was unrestricted. At December 31, 2017, Cleco Holdings was in compliance with the covenants of its credit facility.