8-KMaterial AgreementsExhibits & Filings

CMS ENERGY CORP 8-K Report, Material Agreement (Sep 30, 2010)

Filed September 30, 2010For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) and its principal subsidiary, Consumers Energy Company, reported on September 30, 2010, the entry into a material definitive agreement. Specifically, Consumers Energy entered into a Bond Purchase Agreement (BPA) on September 27, 2010, to issue and sell $300 million in aggregate principal amount of First Mortgage Bonds (FMBs) across various maturity dates and interest rates through a private placement in October 2010. This action indicates a strategic move by the company to secure long-term debt financing.

Key Highlights

  • 1Consumers Energy Company entered into a Bond Purchase Agreement (BPA) on September 27, 2010.
  • 2The BPA facilitates the issuance of $300 million in aggregate principal amount of First Mortgage Bonds (FMBs).
  • 3The bonds will be issued in a private placement scheduled for October 2010.
  • 4The FMBs will have varying maturities: 2015, 2017, 2020, and 2040.
  • 5The coupon rates for the FMBs range from 2.60% to 4.97%.
  • 6This filing is considered a material definitive agreement under Item 1.01 of Form 8-K.
  • 7The filing also includes a cautionary statement regarding forward-looking statements, referencing risk factors and future information in prior SEC filings.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to report the entry into a material definitive agreement, specifically a Bond Purchase Agreement (BPA) entered into by Consumers Energy Company, a subsidiary of CMS Energy Corporation.

Consumers Energy is raising a total of $300 million through the issuance of First Mortgage Bonds (FMBs) under the Bond Purchase Agreement.

The bonds will be issued in a private placement in October 2010. They consist of $50 million of 2.60% FMBs due 2015, $100 million of 3.21% FMBs due 2017, $100 million of 3.77% FMBs due 2020, and $50 million of 4.97% FMBs due 2040.

This filing is important as it signals the company's strategy for long-term debt financing. Investors can assess the cost of debt (interest rates) and the company's capital structure management based on this issuance.