8-KMaterial AgreementsExhibits & Filings

CMS ENERGY CORP 8-K Report, Material Agreement (Jul 13, 2012)

Filed July 13, 2012For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) announced through its principal subsidiary, Consumers Energy Company, the entry into a Bond Purchase Agreement (BPA) on July 10, 2012. This agreement details the issuance and purchase of approximately $354.5 million in First Mortgage Bonds (FMBs) through a private placement scheduled for December 2012. The bonds have varying interest rates and maturity dates, including 3.19% due 2024, 3.39% due 2027, and 4.31% due 2042. This financing activity is a significant event for investors as it outlines how Consumers Energy plans to secure funds for its operations or capital expenditures. The specific terms and rates suggest an effort to manage borrowing costs in the prevailing market conditions. Investors should note that these are forward-looking statements and are subject to the risks and uncertainties detailed in CMS Energy's and Consumers Energy's previous SEC filings, particularly their 10-K and 10-Q reports.

Key Highlights

  • 1Consumers Energy Company, a subsidiary of CMS Energy, entered into a Bond Purchase Agreement (BPA) on July 10, 2012.
  • 2The BPA involves a private placement of First Mortgage Bonds (FMBs) to be issued in December 2012.
  • 3Total principal amount of FMBs to be issued is approximately $354.5 million.
  • 4The bond issuance includes tranches with coupon rates of 3.19% (due 2024), 3.39% (due 2027), and 4.31% (due 2042).
  • 5This transaction represents a material definitive agreement concerning the company's debt financing.
  • 6The filing references forward-looking statements and advises investors to consult risk factors outlined in prior 10-K and 10-Q filings.

Frequently Asked Questions

This Form 8-K filing announces a material definitive agreement, specifically the Bond Purchase Agreement entered into by Consumers Energy Company, a subsidiary of CMS Energy, for the issuance of First Mortgage Bonds.

Consumers Energy is raising approximately $354.5 million through the issuance of First Mortgage Bonds in a private placement scheduled for December 2012.

The bonds have three different series: $51.5 million of 3.19% FMBs due 2024, $35.5 million of 3.39% FMBs due 2027, and $263 million of 4.31% FMBs due 2042.

Investors are directed to the 'FORWARD-LOOKING STATEMENTS AND INFORMATION' and 'RISK FACTORS' sections of CMS Energy Corporation's and Consumers Energy Company's Form 10-K for the Year Ended December 31, 2011, and as updated in their Forms 10-Q for the Quarter Ended March 31, 2012, for details on risks and uncertainties.