New Issue: Consumers Energy sells $550 million 3.1% mortgage bonds due 2050 at 105 bps spread

By Cristal Cody

Tupelo, Miss., Aug. 19 – Consumers Energy Co. sold $550 million of 3.1% first mortgage bonds due Aug. 15, 2050 at a spread of Treasuries plus 105 basis points on Monday, according to an FWP filing with the Securities and Exchange Commission.

The bonds (Aa3/A/A+) priced at 99.291 to yield 3.136%.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets LLC, Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including debt reduction.

Consumers Energy is an electric and gas utility based in Jackson, Miss.

Issuer:	Consumers Energy Co.
Amount:	$550 million
Description:	First mortgage bonds
Maturity:	Aug. 15, 2050
Bookrunners:	BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets LLC, Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America Inc.
Co-managers:	Comerica Securities, Loop Capital Markets LLC, U.S. Bancorp Investments Inc. and Williams Capital Group LP
Coupon:	3.1%
Price:	99.291
Yield:	3.136%
Spread:	Treasuries plus 105 bps
Call features:	Make-whole call before Feb. 15, 2050 at Treasuries plus 20 bps; thereafter at par
Trade date:	Aug. 19
Settlement date:	Sept. 3
Ratings:	Moody’s: Aa3
	S&P: A
	Fitch: A+
Distribution:	SEC registered

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.