CMS Energy announces pricing terms for $147 million debt tender offer

JACKSON, Mich. - CMS Energy Corporation (NYSE: CMS), a $20.57 billion utility company with a "FAIR" financial health rating according to InvestingPro, has announced pricing terms for its previously disclosed cash tender offer to purchase up to $147.095 million aggregate principal amount of outstanding bonds issued by its subsidiary Consumers Energy Company.

The company will purchase $147.095 million principal amount of Consumers Energy’s 2.500% First Mortgage Bonds due 2060 at a total consideration of $565.15 per $1,000 principal amount. This price includes an early tender payment of $30 per $1,000 principal amount for bondholders who tendered by the June 17 early tender deadline. The tender offer aligns with the company’s debt management strategy, with current total debt standing at approximately $17 billion.

The tender offer yield was set at 5.222%, based on a reference yield of 4.872% plus a fixed spread of 35 basis points. CMS Energy expects to fund the purchase with cash on hand.

The early settlement date is scheduled for June 23, with payments including accrued and unpaid interest up to but not including that date. While the tender offer is scheduled to expire on July 3, CMS Energy does not expect to accept additional tenders after the early tender date as the amount of bonds already tendered exceeds the aggregate tender cap.

U.S. Bancorp Investments, Inc. is serving as the sole lead dealer manager for the offer, with Fifth Third Securities, Inc. acting as co-dealer manager.

The withdrawal deadline for the tender offer has passed, meaning tendered bonds may no longer be withdrawn except in limited circumstances required by law.

This information is based on a press release statement from CMS Energy dated June 18, 2025. The company has demonstrated strong financial stability, maintaining dividend payments for 19 consecutive years with 18 years of consecutive increases. InvestingPro subscribers can access detailed analysis and 6 additional key insights about CMS Energy’s financial performance and outlook through the comprehensive Pro Research Report.

In other recent news, CMS Energy has reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.02. This figure matched BMO Capital’s estimate and was closely aligned with the consensus estimate of $1.01. Following the earnings report, BMO Capital raised its price target for CMS Energy to $79, maintaining an Outperform rating. Scotiabank also increased its price target to $81, citing CMS Energy’s superior EPS growth rate and low-risk profile. The company recently held its annual shareholder meetings, where all board nominees were elected, and executive compensation was approved. Additionally, PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025. KeyBanc analysts maintained an Overweight rating on CMS Energy, highlighting growth opportunities from legislative changes in Michigan. These developments reflect ongoing confidence in CMS Energy’s strategic direction and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.