CMS Energy Corporation Announces Successful Sale of $180 Million Debt Instrument

Strategic Insights -

CMS Energy Corporation, an international energy company with operations in the United States and 16 countries worldwide, has successfully sold a $180 million debt instrument to finance its business operations. The debt instrument, with an interest rate of 7.0 percent, will be repaid through the sale of pass-through certificates issued by a trust established by CMS Energy. The proceeds from the sale will be used to repay borrowings under its $1.125 billion revolving credit facility, as well as for general corporate purposes.

Key Takeaways:

  • CMS Energy Corporation, a $5 billion international energy company, has sold a $180 million debt instrument with an interest rate of 7.0 percent.
  • The debt instrument was sold through public offering of pass-through certificates issued by a trust established by CMS Energy.
  • The proceeds from the sale will be used to repay borrowings under CMS Energy's $1.125 billion revolving credit facility and various working capital facilities.
  • CMS Energy has a principal subsidiary, Consumers Energy, which is Michigan's largest utility and America's fourth largest combination gas and electric utility.
  • The company has operations in the United States and 16 countries around the world, with businesses in electric and natural gas utility operations, independent power production, natural gas pipelines and storage, oil and gas exploration and production, and energy marketing, services, and trading.

Statistics:

  • $180 million: Amount of the debt instrument sold by CMS Energy Corporation.
  • 7.0 percent: Interest rate of the debt instrument.
  • $1.125 billion: Size of CMS Energy's revolving credit facility.
  • $5 billion (sales): Revenue of CMS Energy Corporation.
  • $9 billion (asset): Asset value of CMS Energy Corporation.
  • 16 countries: Number of countries where CMS Energy Corporation has operations.
  • 1998: Year in which CMS Energy held its successful sale of debt instrument.

Sources:

  • PR Newswire, "CMS Energy Corporation Announces Successful Sale of $180,000,000 Debt Instrument," January 13, 1998
  • CMS Energy Corporation, http://www.cmsenergy.com, accessed January 13, 1998