Summary
CMS Energy Corporation (CMS) announced on December 15, 2011, the execution of a $180 million unsecured Term Loan Credit Agreement with a syndicate of banks including JPMorgan Chase Bank, N.A., Union Bank, N.A., and Bank of America, N.A. This agreement has a five-year term, maturing in 2016, and is intended to facilitate the redemption of certain outstanding debt obligations. The company also provided standard forward-looking statement disclaimers, urging investors to consult its previously filed 10-K and 10-Q reports for a comprehensive understanding of risks and potential uncertainties that could impact future results. The primary focus of this 8-K filing is the material definitive agreement regarding the new credit facility.
Key Highlights
- 1CMS Energy secured a new $180 million unsecured Term Loan Credit Agreement.
- 2The agreement has a five-year term, expiring in 2016.
- 3The new loan facility is intended for the redemption of existing debt.
- 4The lending syndicate includes major financial institutions: JPMorgan Chase Bank, Union Bank, and Bank of America.
- 5This filing is primarily an informational report on a material definitive agreement.
- 6CMS Energy directs investors to its 10-K and 10-Q filings for detailed risk factors and forward-looking information.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report the entry into a material definitive agreement, specifically a $180 million Term Loan Credit Agreement, by CMS Energy Corporation.
The new credit agreement is for $180 million and has a five-year term, meaning it will expire in 2016.
CMS Energy expects to use the borrowings from this agreement for the redemption of certain outstanding debt.
CMS Energy refers investors to the 'FORWARD-LOOKING STATEMENTS AND INFORMATION' and 'RISK FACTORS' sections of its Form 10-K for the year ended December 31, 2010, and as updated in its Forms 10-Q for the quarters ended March 31, June 30, and September 30, 2011.