CMS unit Consumers Energy to sell first mortgage bonds via five bookrunners

By Mary-Katherine Stinson

Lexington, Ky., Jan. 3 – Consumers Energy Co. plans to sell first mortgage bonds via five bookrunners, according to a 424B5 filing with the Securities and Exchange Commission.

The bonds feature a make-whole call followed by a par call.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC and Loop Capital Markets LLC are the joint bookrunners.

Bank of New York Mellon is the trustee.

The company will use in-house counsel and Sidley Austin LLP. Counsel to the underwriters is provided by Pillsbury Winthrop Shaw Pittman LLP.

Proceeds will be used to repay a portion of the $1 billion aggregate principal amount outstanding under the company’s term loan credit agreement dated as of July 22 and for general corporate purposes.

The $1 billion term loan bears interest at an annual interest rate SOFR plus 65 basis points (a weighted average interest rate of 4.975%) and matures on Jan. 22, 2024.

Consumers Energy is a Jackson, Mich.-based public electric and gas utility and a subsidiary of CMS Energy Corp.

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