CMS Energy Makes $240M Tender Offer
June 24, 2009
CMS Energy made a tender offer to buy up to $240 million of its own bonds. The Jackson, Mich.-based electric and gas utility and power generator is making two separate offers for different series of bonds.
The company is offering $1,020 per $1,000 of its $300 million in outstanding 7.75% senior notes due 2010 and $1,007.50 per $1,000 of its $300.4 million of its outstanding 8.5% senior notes due 2011. Bondholders will get an additional $30 early tender payment if they turn in their bonds before the early tender deadline of July 7. The final deadline for the tender offer is July 21. Deutsche Bank is the dealer manager for the offer.
To help fund the tender offer, CMS priced $300 million in 8.75% senior notes due 2019 on June 9. The company may issue as much as $22.5 million in convertible senior notes to underwriters to cover overallotments.
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