Summary
CMS Energy Corporation (CMS), through its principal subsidiary Consumers Energy Company, announced on August 11, 2010, the amendment and restatement of its $150 million Secured Revolving Credit Facility. This "Second Amended Facility" replaces an existing facility set to expire in September 2010. The new agreement maintains substantially similar terms but extends the maturity to three years from the effective date. This action provides Consumers Energy with continued access to a significant line of credit, crucial for its general corporate purposes and operational flexibility. The facility is secured by first mortgage bonds, offering lenders collateral. Investors should view this as a positive step in managing the company's liquidity and financial stability, ensuring ongoing access to funds for essential business operations.
Key Highlights
- 1Consumers Energy Company (a CMS Energy subsidiary) amended and restated its $150 million Secured Revolving Credit Facility.
- 2The new "Second Amended Facility" replaces an existing credit line that was set to expire in September 2010.
- 3The updated facility has a three-year term, providing longer-term access to funds.
- 4The terms of the Second Amended Facility are substantially similar to previous agreements.
- 5Funds drawn under the facility will be used for general corporate purposes.
- 6The credit facility is secured by first mortgage bonds of Consumers Energy.
- 7Union Bank, N.A. led the consortium of banks providing the credit facility.