CMS Energy announces tenders for up to $150 million purchase price of seven notes

By Wendy Van Sickle

Columbus, Ohio, May 3 – CMS Energy Corp. announced tenders for up to a $150 million total purchase price, excluding accrued interest, of seven series of outstanding notes issued by itself or Consumers Energy Co., according to a news release.

The securities, listed in order of acceptance priority, include

• The $525 million outstanding 2.5% first mortgage bonds due 2060 issued by Consumers Energy (Cusip: 210518DJ2) for a price to be set using the 4% U.S. Treasury note due Nov. 15, 2052 plus 97 basis points;

• The $300 million outstanding 2.65% first mortgage bonds due 2052 issued by Consumers Energy (Cusip: 210518DN3) for a price to be set using the 4% U.S. Treasury note due Nov. 15, 2052 plus 82 bps;

• The $550 million outstanding 3.1% first mortgage bonds due 2050 issued by Consumers Energy (Cusip: 210518DF0) for a price to be set using the 4% U.S. Treasury note due Nov. 15, 2052 plus 103 bps;

• The $450 million outstanding 3.25% first mortgage bonds due 2046 issued by Consumers Energy (Cusip: 210518CZ7) for a price to be set using the 3.875% U.S. Treasury note due Feb. 15, 2043 plus 101 bps;

• The $250 million outstanding 4.7% senior notes due 2043 issued by CMS (Cusip: 125896BL3) for a price to be set using the 3.875% U.S. Treasury note due Feb. 15, 2043 plus 190 bps;

• The $575 million outstanding 3.5% first mortgage bonds due 2051 issued by Consumers Energy (Cusip: 210518DH6) for a price to be set using the 4% U.S. Treasury note due Nov. 15, 2052 plus 108 bps; and

• The $300 million outstanding 3.75% first mortgage bonds due 2050 issued by Consumers Energy (Cusip: 210518DE3) for a price to be set using the 4% U.S. Treasury note due Nov. 15, 2052 plus 115 bps.

There is a $150 million series tender cap for the 2060 first mortgage bonds and a $25 million series cap for the 2043 notes.

Each total consideration will include a $30 early tender premium per $1,000 principal amount of notes that will be paid only to holders who tender by the early deadline, 5 p.m. ET on May 16. Early settlement is expected on May 18.

Pricing will be set at 10 a.m. ET on May 17.

The offer will expire at 5 p.m. ET on June 1, with final settlement expected on June 5.

Barclays Capital Inc. (212 528-7581or 800 438-3242) and J.P. Morgan Securities LLC (212 834-4045 or 866 834-4666) are the dealer managers.

D.F. King & Co. Inc. (cms@dfking.com, 888 628-1041, 212 269-5550 or www.dfking.com/cms) is the information agent and tender agent.

CMS Energy is a Jackson, Mich.-based electric and natural gas utility company.

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