8-KMaterial AgreementsExhibits & Filings

CMS ENERGY CORP 8-K Report, Material Agreement (Dec 28, 2012)

Filed December 28, 2012For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) and its subsidiary Consumers Energy Company have entered into material definitive agreements by amending and restating their respective revolving credit facilities. CMS Energy amended its $550 million facility, while Consumers Energy amended its $500 million facility. Both agreements were executed on December 21, 2012, and establish 5-year terms expiring on December 21, 2017. These new facilities replace existing ones that were scheduled to mature in 2016. These actions are significant for investors as they demonstrate proactive management of the companies' liquidity and financial flexibility. The extension of the credit facilities provides a longer runway for general corporate purposes, potentially supporting ongoing operations, capital expenditures, and strategic initiatives. The secured nature of the facilities, with collateral consisting of Consumers Energy common stock for CMS Energy and first mortgage bonds for Consumers Energy, provides comfort to lenders and indicates the companies' commitment to maintaining access to credit.

Key Highlights

  • 1CMS Energy amended and restated its $550 million secured Revolving Credit Facility.
  • 2Consumers Energy amended and restated its $500 million secured Revolving Credit Facility.
  • 3Both credit facilities have been extended to a 5-year term, expiring on December 21, 2017.
  • 4The new facilities replace existing credit lines that were set to expire in 2016.
  • 5Funds drawn under these facilities are intended for general corporate purposes.
  • 6CMS Facility obligations are secured by Consumers Energy common stock.
  • 7Consumers Facility obligations are secured by Consumers Energy first mortgage bonds.

Frequently Asked Questions

This 8-K filing announces that CMS Energy Corporation and its subsidiary Consumers Energy Company have amended and restated their revolving credit facilities. This action extends their borrowing capacity and financial flexibility for general corporate purposes.

Both the CMS Energy and Consumers Energy revolving credit facilities now have a 5-year term, with an expiration date of December 21, 2017.

Extending credit facilities demonstrates proactive financial management and ensures continued access to liquidity. This provides the company with financial flexibility to meet its obligations, fund operations, and pursue strategic opportunities without immediate concerns about maturing debt.

The CMS Energy facility is secured by Consumers Energy common stock. The Consumers Energy facility is secured by first mortgage bonds of Consumers Energy.