8-KMaterial AgreementsExhibits & Filings

CMS ENERGY CORP 8-K Report, Material Agreement (Apr 6, 2011)

Filed April 6, 2011For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) and its subsidiary Consumers Energy Company have entered into new, substantial revolving credit facilities to enhance their liquidity and financial flexibility. CMS Energy secured a $550 million facility, and Consumers Energy established a $500 million facility, both with five-year terms, replacing existing agreements that were due to expire in 2012. These new facilities provide access to capital for general corporate purposes and are secured by company assets, with CMS Energy's obligations backed by Consumers Energy's common stock and Consumers Energy's by its first mortgage bonds.

Key Highlights

  • 1CMS Energy and Consumers Energy have entered into new, larger revolving credit facilities totaling $1.05 billion.
  • 2These facilities are secured, with CMS Energy's facility backed by Consumers Energy's common stock and Consumers Energy's facility backed by its first mortgage bonds.
  • 3The new credit lines have a 5-year term, extending their maturity beyond the expiring facilities.
  • 4The credit agreements were finalized on March 31, 2011, and were effective immediately.
  • 5The primary purpose of these facilities is to provide funds for general corporate purposes.
  • 6Major financial institutions, including Barclays, J.P. Morgan, Union Bank, Citigroup, and RBS, are involved as lenders in both facilities.
  • 7This action strengthens the companies' liquidity positions and demonstrates access to capital markets.

Frequently Asked Questions

CMS Energy secured a $550 million revolving credit facility, and Consumers Energy established a $500 million revolving credit facility, bringing the total new capacity to $1.05 billion.

Both the CMS Energy and Consumers Energy credit facilities have a 5-year term. They replace previous revolving credit facilities that were scheduled to expire in 2012.

The obligations under the CMS Energy facility are secured by Consumers Energy's common stock. The obligations under the Consumers Energy facility are secured by its first mortgage bonds.

CMS Energy and Consumers Energy expect that any drawings under these facilities will be used for general corporate purposes.