SOURCE: Cleco Corp.

September 13, 2007 16:12 ET

Sale of Calpine's Interest in Acadia Plant Complete

Cleco Receives $85 Million at Closing

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.

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