CMS Energy gives pricing, acceptance amounts of tender for seven notes

By Wendy Van Sickle

Columbus, Ohio, May 17 – CMS Energy Corp. announced the pricing and early results of its cash tender offers 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 company said it took in $1.71 billion of tenders by the early deadline and later reported that it will accept only a portion of notes tendered under the top two notes in terms of acceptance priority and no tenders under any of the other series.

The following tenders will be accepted at the total considerations listed per $1,000 principal amount:

• $149,992,000 accepted of the $359,097,000 early tenders of the $525 million outstanding 2.5% first mortgage bonds due 2060 issued by Consumers Energy (Cusip: 210518DJ2) for $600.88, set using the 4% U.S. Treasury note due Nov. 15, 2052 plus 97 basis points; and

• $88,184,000 accepted of the $206,852,000 early tenders of the $300 million outstanding 2.65% first mortgage bonds due 2052 issued by Consumers Energy (Cusip: 210518DN3) for $678.95, set using the 4% U.S. Treasury note due Nov. 15, 2052 plus 82 bps.

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

Pricing was set at 10 a.m. ET on May 17.

The company accepted none of the following early tenders:

• $372,517,000 tendered of the $550 million outstanding 3.1% first mortgage bonds due 2050 issued by Consumers Energy (Cusip: 210518DF0);

• $207,885,000 tendered of the $450 million outstanding 3.25% first mortgage bonds due 2046 issued by Consumers Energy (Cusip: 210518CZ7);

• $24,466,000 tendered of the $250 million outstanding 4.7% senior notes due 2043 issued by CMS (Cusip: 125896BL3);

• $331,222,000 tendered of the $575 million outstanding 3.5% first mortgage bonds due 2051 issued by Consumers Energy (Cusip: 210518DH6); and

• $203.23 million tendered of the $300 million outstanding 3.75% first mortgage bonds due 2050 issued by Consumers Energy (Cusip: 210518DE3).

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

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

The company announced it does not expect to accept for purchase any notes tendered after the early deadline as the amount of notes tendered already exceeds the maximum purchase price.

Barclays (212 528-7581 or 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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