Contact Information: Investor Contacts: Cleco Corporation: Ryan Gunter (318) 484-7724 Shareholder Services: Rodney Hamilton (318) 484-7593 Analyst Inquiries: Kristine Walczak (312) 780-7205 Media Contact: Michael Burns (318) 484-7663
Cleco Corporation Reaches Settlement Agreement With Calpine
| Source: Cleco Corp.
PINEVILLE, LA -- (MARKET WIRE) -- April 23, 2007 -- Cleco Corp. (NYSE : CNL ) announced today a
settlement has been reached with Calpine Corp., subject to bankruptcy court
approval, resolving issues related to their co-owned Acadia power plant.
The plant is owned by Acadia Power Partners LLC, an entity owned equally by
Cleco's Acadia Power Holdings LLC (APH) and Calpine Acadia Holdings LLC
(CAH).
Under the proposed settlement APH will receive allowed unsecured claims
against Calpine Energy Services, L.P., (CES) and Calpine of $85 million in
connection with two long-term tolling agreements CES held for the output of
the 1,160-megawatt plant located near Eunice and Calpine's guaranty of
those agreements.
Additionally, APH has agreed to purchase Calpine's 50 percent ownership
interest in Acadia Power Partners for $60 million, subject to any higher or
better offers Calpine may receive in a bankruptcy court-sponsored auction.
APH's $60 million offer, in effect, values a 50 percent interest in the
Acadia power plant at $145 million, taking into account the agreed value of
certain priority distributions and payments due APH.
APH's offer will serve as a "Stalking Horse" bid in the auction of
Calpine's interest in Acadia Power Partners. The auction process is
anticipated to begin in May, with the bankruptcy auction expected in July.
The terms of the auction, including a breakup fee and other protections in
favor of APH, will be considered at a May 9 bankruptcy court hearing.
If APH is not the successful bidder, APH will retain its 50 percent
ownership in Acadia Power Partners and receive payment from the successful
bidder in the amount of $85 million. The $85 million payment is the agreed
value of certain priority distributions and payments due APH under
agreements with Calpine affiliates.
In either outcome, a Cleco subsidiary will assume operations and project
management functions at the plant.
"We are extremely pleased to have reached an agreement with Calpine and
look forward to assuming the daily activities of the plant," Cleco
President and CEO Michael Madison said.
Cleco Corp. is a regional energy services company headquartered in
Pineville, La. It operates a regulated electric utility company that
serves 268,000 customers across Louisiana. Cleco also operates a wholesale
energy business that has approximately 1,350 megawatts of generating
capacity. For more information about Cleco, visit www.cleco.com.
Please note: This news release contains forward-looking statements about
future results and circumstances with respect to which there are many risks
and uncertainties, including the resolution of claims arising from the
Calpine bankruptcy, and the other risks and uncertainties more fully
described in Cleco's latest Annual Report on Form 10-K. Actual results may
differ materially from those indicated in such forward-looking statements.