CMS Energy, subsidiary extend and amend revolving credit facilities

By Toni Weeks

San Diego, Dec. 28 - CMS Energy Corp. amended and restated its $550 million secured revolving credit facility on Dec. 21, and Consumers Energy Co., CMS' regulated subsidiary, amended and restated its $500 million secured revolving credit facility on the same date, according to an 8-K filing with the Securities and Exchange Commission.

Both facilities expire Dec. 21, 2017 and replace revolving credit facilities that were set to expire in 2016.

Obligations under the CMS facility will continue to be secured by Consumers Energy common stock. Obligations under the Consumers Energy facility will continue to be secured by its first mortgage bonds.

For the CMS facility, interest will be Libor plus 125 basis points to 225 bps depending on senior debt rating. Barclays Bank plc is agent and a letter-of-credit issuer. JPMorgan Chase Bank, NA and Union Bank, NA are co-syndication agents.

For the Consumers Energy facility, interest will be Libor plus 87.5 bps to 150 bps, also based on senior debt ratings. JPMorgan is the agent and a letter-of-credit issuer, while Barclays and Union Bank are co-syndication agents.

For both revolvers, Royal Bank of Scotland plc is the documentation agent, and Barclays, J.P. Morgan Securities LLC, Union Bank and RBS Securities Inc. are joint lead arrangers and joint bookrunners.

The Jackson, Mich.-based energy company expects to use proceeds for general corporate purposes.

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