Consumers Energy Company, a Michigan-based provider of electric and other services, announced today the issuance and sale of $700 million in aggregate principal amount of its 4.70% First Mortgage Bonds due 2030. The bonds were sold pursuant to a shelf registration process.
The company stated that the net proceeds from the bond sale would be used to redeem its 3.125% First Mortgage Bonds, which are due on August 31, 2024, and have an outstanding aggregate principal amount of $250 million as of June 30, 2024. The remaining funds are earmarked for general corporate purposes.
The bonds were issued under an underwriting agreement dated July 29, 2024, with a consortium of underwriters led by J.P. Morgan Securities LLC, MUFG Securities Americas Inc., and Wells Fargo Securities, LLC, among others.
This financial maneuver is part of Consumers Energy's broader strategy to manage its debt profile and ensure financial flexibility. The transaction was facilitated by an underwriting agreement and the issuance of a 152nd Supplemental Indenture dated August 5, 2024, between Consumers and The Bank of New York Mellon (NYSE:BK), serving as the trustee.
The legal opinion regarding the legality of the bonds was provided by Melissa M. Gleespen, Esq., Vice President, Corporate Secretary, and Chief Compliance Officer of Consumers Energy.
The bonds are listed on the New York Stock Exchange under the trading symbol CMS-PB. Consumers Energy is a subsidiary of CMS Energy Corp (NYSE:CMS). and serves as the primary provider of natural gas and electricity to Michigan's residents.
This move is part of the company's ongoing efforts to optimize its capital structure and reduce financing costs. The information contained in this news article is based on the company's recent SEC filing.
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