CMS Energy talks $650 million five-year convertibles to yield 2.875%-3.375%, up 20%-25%

By Abigail W. Adams

Portland, Me., May 1 – CMS Energy Corp. plans to price $650 million of five-year convertible notes (expected Baa2) after the market close on Monday with price talk for a coupon of 2.875% to 3.375% and an initial conversion premium of 20% to 25%, according to a market source.

Barclays (lead left) and J.P. Morgan Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $100 million.

The notes are non-callable for three-years and then subject to a 130% hurdle.

There is dividend protection about $0.4875 per quarter.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to redeem, repurchase or repay existing debt and for general corporate purposes.

CMS Energy is a Jackson, Mich.-based electric and natural gas utility company.

© 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.