8-KMaterial AgreementsExhibits & Filings

CMS ENERGY CORP 8-K Report, Material Agreement (Jun 1, 2017)

Filed June 1, 2017For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) and its subsidiary Consumers Energy Company have successfully extended their revolving credit agreements, enhancing their financial flexibility and stability. The $550 million CMS Energy agreement and the $650 million Consumers Energy agreement, initially set to expire on May 27, 2017, have both been extended for an additional year to May 27, 2022. This extension demonstrates strong relationships with key financial institutions, namely Barclays Bank PLC and JPMorgan Chase Bank, N.A., as agents for the lending banks. These extensions are crucial for maintaining robust liquidity and supporting ongoing operational needs and strategic initiatives. The secured nature of these credit facilities, backed by Consumers Energy's common stock and first mortgage bonds, provides a solid foundation for continued access to capital. Investors should view these renewals positively, as they signal a proactive approach to managing corporate debt and ensuring continued financial health for CMS Energy and its subsidiary.

Key Highlights

  • 1CMS Energy and Consumers Energy extended their respective revolving credit facilities by one year.
  • 2The CMS Energy credit agreement for $550 million now matures on May 27, 2022.
  • 3The Consumers Energy credit facility for $650 million also now matures on May 27, 2022.
  • 4These extensions were agreed upon with Barclays Bank PLC (for CMS Energy) and JPMorgan Chase Bank, N.A. (for Consumers Energy), acting as agents for the respective banks.
  • 5The CMS Energy credit facility is secured by Consumers Energy common stock.
  • 6The Consumers Energy credit facility is secured by first mortgage bonds of Consumers Energy.
  • 7The filing indicates strong ongoing relationships with major financial institutions.

Frequently Asked Questions

This 8-K filing announces the entry into material definitive agreements, specifically the extension of the termination dates for two significant revolving credit facilities for CMS Energy Corporation and its subsidiary, Consumers Energy Company.

Both the $550 million CMS Energy revolving credit agreement and the $650 million Consumers Energy revolving credit facility have had their termination dates extended to May 27, 2022.

The extension provides CMS Energy and Consumers Energy with continued access to a significant pool of capital, enhancing their financial flexibility and liquidity for at least one additional year. This is important for funding operations, investments, and managing their capital structure.

The obligations under the CMS Energy agreement are secured by Consumers Energy common stock. The obligations under the Consumers Energy agreement are secured by first mortgage bonds of Consumers Energy.