By Paul A. Harris
St. Louis, June 19 - CMS Energy Corp. priced a $400 million two-part issue of senior notes (Ba1/BB+/BB-) on Tuesday, according to an informed source.
The Jackson, Mich., integrated energy company priced a $250 million tranche of 6.55% 10-year fixed-rate notes at a 150 basis point spread to Treasuries, at the tight end of the Treasuries plus 150 to 155 bps price talk.
CMS also priced a $150 million tranche of 5.5-year floating-rate notes at par to yield three-month Libor plus 95 bps, at the tight end of the three-month Libor plus 95 to 100 bps price talk.
Deutsche Bank Securities, Barclays Capital, Citigroup, JP Morgan, Merrill Lynch & Co. and Wachovia Securities were joint bookrunners for the notes, which have been registered with the Securities and Exchange Commission.
Proceeds plus available cash will be used to fund the tender for the company's 7½% senior notes due 2009 and for general corporate purposes.
CMS Energy's business strategy is focused primarily in Michigan.
| Issuer: | CMS Energy Corp.
|
| Amount: | $400 million
|
| Security description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, Barclays Capital, Citigroup, JP Morgan, Merrill Lynch & Co., Wachovia Securities
|
| Trade date: | June 19
|
| Settlement date: | July 3
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
|
|
| Fixed-rate notes
|
| Amount: | $250 million
|
| Maturity: | July 17, 2017
|
| Coupon: | 6.55%
|
| Price: | 99.742
|
| Yield: | 6.585%
|
| Spread: | 150 bps
|
| Call protection: | Non-callable with a make-whole provision at Treasuries plus 30 bps
|
| Price talk: | Treasuries plus 150 to 155 bps
|
|
|
| Floating-rate notes
|
| Amount: | $150 million
|
| Maturity: | Jan. 15, 2013
|
| Coupon: | Three-month Libor plus 95 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 95 bps
|
| Call protection: | Callable at par on or after July 15, 2009
|
| Price talk: | Three-month Libor plus 95 to 100 bps
|
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