8-KFinancial EventsExhibits & Filings

CMS ENERGY CORP 8-K Report, Financial Obligation (Oct 20, 2010)

Filed October 20, 2010For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) and its principal subsidiary, Consumers Energy Company, reported the closing of a significant private placement debt offering on October 15, 2010. This transaction involved the issuance of $300 million in aggregate principal amount of First Mortgage Bonds (FMBs) across four tranches with varying maturities and interest rates. Specifically, the company issued $50 million in 2.60% FMBs due 2015, $100 million in 3.21% FMBs due 2017, $100 million in 3.77% FMBs due 2020, and $50 million in 4.97% FMBs due 2040. This debt issuance effectively refinances or raises capital for Consumers Energy, impacting its leverage and interest expense. Investors should note the specific interest rates and maturity dates for each tranche, as these details influence the company's future financial obligations and cash flow requirements. The issuance was conducted under an existing indenture, with a new supplemental indenture providing the framework for these specific bonds. The filing also reminds investors to refer to the company's previous SEC filings for a comprehensive understanding of risks and forward-looking statements.

Key Highlights

  • 1Consumers Energy Company closed a private placement debt offering totaling $300 million on October 15, 2010.
  • 2The issuance consists of four series of First Mortgage Bonds (FMBs) with staggered maturity dates.
  • 3$50 million of 2.60% FMBs due October 15, 2015.
  • 4$100 million of 3.21% FMBs due October 15, 2017.
  • 5$100 million of 3.77% FMBs due October 15, 2020.
  • 6$50 million of 4.97% FMBs due October 15, 2040.
  • 7The bonds are secured under an existing indenture, supplemented by the 113th Supplemental Indenture dated October 15, 2010.

Frequently Asked Questions

Consumers Energy Company issued a total of $300 million in First Mortgage Bonds across four different tranches.

The bonds carry the following rates and maturities: $50 million at 2.60% due 2015, $100 million at 3.21% due 2017, $100 million at 3.77% due 2020, and $50 million at 4.97% due 2040.

The bonds were issued under an existing Indenture dated September 1, 1945, which was supplemented by the 113th Supplemental Indenture dated October 15, 2010.

No, this Form 8-K filing primarily reports the closing of a debt issuance and does not include updated financial statements or forward-looking guidance. Investors are directed to refer to previous 10-K and 10-Q filings for such information and risk factors.