Summary
CMS Energy Corporation (CMS), through its principal subsidiary Consumers Energy, has entered into a new $250 million secured revolving credit agreement with The Bank of Nova Scotia. This agreement, effective November 23, 2015, has a two-year term expiring November 23, 2017, and is secured by first mortgage bonds of Consumers Energy. The company expects to use any proceeds from this facility for general corporate purposes, indicating a strategic move to secure liquidity and operational flexibility. This development coincides with the termination of Consumers Energy's previous $250 million revolving accounts receivables sales program and an associated amended and restated receivables purchase agreement, as well as a receivables sale agreement.
Key Highlights
- 1Consumers Energy, a subsidiary of CMS Energy, secured a new $250 million revolving credit agreement.
- 2The new credit facility has a term of two years, expiring on November 23, 2017.
- 3The credit agreement is secured by first mortgage bonds of Consumers Energy.
- 4Funds drawn from the new credit facility are intended for general corporate purposes.
- 5Consumers Energy terminated its $250 million revolving accounts receivables sales program.
- 6The termination of the receivables program also included an amended and restated receivables purchase agreement and a receivables sale agreement.