Contact Information: Investor Contacts: Cleco Corporation: Ryan Gunter (318) 484-7724 Shareholder Services: Rodney Hamilton (318) 484-7593 Analyst Inquiries: Dresner Companies Kristine Walczak (312) 780-7205 Media Contact: Cleco Corporation Fran Phoenix (318) 484-7467
Sale of Calpine's Interest in Acadia Plant Complete
Cleco Receives $85 Million at Closing
| Source: Cleco Corp.
PINEVILLE, LA--(Marketwire - September 13, 2007) - Cleco Midstream Resources, a subsidiary of
Cleco Corp. (NYSE : CNL ), announced today the completed sale of Calpine's
interest in Acadia Power Partners (Acadia) to Cajun Gas Energy, L.L.C.
(Cajun), a subsidiary of investment funds managed by King Street Capital
Management, L.L.C.
With a bid of $189 million, Cajun was the successful bidder in a July 30
bankruptcy auction for Calpine's 50 percent ownership in Acadia.
The claims settlement reached between Cleco and Calpine back in April
included the sale of Calpine's interest in Acadia. It also resolved all of
Cleco's issues related to Calpine's bankruptcy, including Calpine's default
on tolling agreements it had for Acadia's output. As part of the Cajun
purchase, Cleco received an $85 million priority distribution payment.
The Federal Energy Regulatory Commission approved the sale making Cleco and
Cajun co-owners of the 1,160-megawatt, natural gas-fired power plant
located near Eunice, La. Cleco is going to manage and operate the plant.
"I am very pleased with the full outcome of the Acadia settlement," Mike
Madison, Cleco president and CEO, said. "Despite the downturn in the
wholesale generation business, we preserved our stake in Acadia by
carefully managing our risks. As a result, we now have an opportunity to
work with Cajun and maximize the value of the Acadia asset."
"Cajun's bid for Calpine's half of the plant reaffirms that Acadia is
indeed a valuable asset and a good investment," Darren Olagues, senior vice
president of Cleco Midstream Resources, said. "We're eager to begin working
with Cajun to start developing a common strategy for Acadia."
Cleco Corp. is a regional energy 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
with approximately 1,350 megawatts of generating capacity. For more
information about Cleco, visit www.cleco.com.
Cajun Gas Energy, L.L.C. is a subsidiary of investment funds managed by
King Street Capital Management, L.L.C.