Summary
CMS Energy Corporation (CMS), through its principal subsidiary Consumers Energy Company, announced an extension of its $250 million secured revolving credit agreement with The Bank of Nova Scotia. The termination date of this agreement has been extended by one year, from November 23, 2017, to November 23, 2018. This extension ensures continued access to a significant line of credit, providing financial flexibility and stability for the company's operations and potential future investments. The credit facility remains secured by first mortgage bonds of Consumers Energy.
Key Highlights
- 1Extension of $250 million secured revolving credit agreement by one year.
- 2New termination date for the credit facility is November 23, 2018.
- 3The agreement is between Consumers Energy Company and The Bank of Nova Scotia.
- 4The credit line remains secured by first mortgage bonds of Consumers Energy.
- 5This action demonstrates continued access to a significant source of liquidity for CMS Energy's subsidiary.
- 6The filing was made on November 23, 2016.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report the entry into a material definitive agreement, specifically the extension of Consumers Energy Company's $250 million secured revolving credit agreement.
The one-year extension of the $250 million credit facility by Consumers Energy provides continued access to a significant source of liquidity, enhancing the company's financial flexibility and ability to manage its short-term funding needs and operational requirements.
The parties involved are Consumers Energy Company (a principal subsidiary of CMS Energy Corporation) as the borrower and The Bank of Nova Scotia as the lender.
Yes, the obligations under the revolving credit agreement continue to be secured by first mortgage bonds of Consumers Energy.