JACKSON, Mich., June 8 /PRNewswire-FirstCall/ -- CMS Energy (NYSE:CMS) announced today that it intends to offer, subject to market and other conditions, $150 million principal amount of Convertible Senior Notes due 2029 and $300 million principal amount of Senior Notes due 2019. In addition, CMS Energy may issue up to an additional $22.5 million principal amount of convertible senior notes upon exercise of an option to be granted to the underwriters to cover over-allotments, if any.
It is expected that the net proceeds from the proposed offerings will be used for the retirement of existing indebtedness (including a substantial portion of the outstanding principal amount of the convertible subordinated debentures underlying the 7.75 percent Convertible Quarterly Income Preferred Securities of CMS Energy Trust I) through redemption, open market repurchases, tender offers or private agreements, and for general corporate purposes.
The proposed offerings of convertible senior notes and senior notes are not conditional on each other. There can be no assurance that either or both proposed offerings will be consummated.
Barclays Capital Inc. is acting as sole book-running manager for the convertible senior notes offering. Barclays Capital Inc., Deutsche Bank Securities Inc., Banc of America Securities LLC, Citigroup Global Markets Inc. and UBS Securities LLC are acting as joint book-running managers for the senior notes offering.
Each offering will be made only by means of a prospectus, forming a part of CMS Energy's shelf registration statement, a related prospectus supplement and other related documents. Before you invest, you should read the prospectus supplement and accompanying prospectus and other documents that CMS Energy has filed with the Securities and Exchange Commission for more complete information about CMS Energy and the offering(s).
You may obtain these documents for free by visiting the Securities and Exchange Commission's website at http://www.sec.gov/. Alternatively, you may obtain a copy of the relevant prospectus supplement and accompanying prospectus from (i) in the case of the convertible senior notes offering or the senior notes offering, Barclays Capital Inc., c/o Broadridge, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, email: or by calling toll-free 888-603-5847, or (ii) in the case of the senior notes offering, Deutsche Bank Securities Inc., 100 Plaza One, Second Floor, Jersey City, NJ 07311 or by calling toll-free 800-503-4611.
Today's announcement does not constitute an offer to sell or the solicitation of an offer to buy the convertible senior notes, the senior notes or any other securities, nor will there be any sale of convertible senior notes, senior notes or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
CMS Energy is a Michigan-based company that has as its primary business operations an electric and natural gas utility, natural gas pipeline systems and independent power generation.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including whether or not CMS Energy will offer the convertible senior notes or the senior notes or consummate either offering, the anticipated terms of the convertible senior notes and the senior notes and the offerings and the anticipated uses of proceeds of the offerings. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS", each found in CMS Energy's Form 10-K for the year ended December 31, 2008 and Form 10-Q for the quarter ended March 31, 2009. CMS Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference and discuss important factors that could cause CMS Energy's results to differ materially from those anticipated in such statements. DATASOURCE: CMS Energy CONTACT: Media only, Jeff Holyfield of CMS Energy, +1-517-788-2394 Web Site: http://www.cmsenergy.com/
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