New Issue: Consumers Energy prices $425 million 3.95% 30-year bonds at Treasuries plus 85 bps

By Andrea Heisinger

New York, May 13 - Consumers Energy Co. sold $425 million of 3.95% 30-year first mortgage bonds (A2/A-/A-) Monday to yield Treasuries plus 85 basis points, a market source said.

Pricing was at 99.843 to yield 3.959%. There is a make-whole call at Treasuries plus 15 bps to Nov. 15, 2042 and a par call after that date.

Bookrunners were Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc., UBS Securities LLC and Wells Fargo Securities LLC.

Proceeds, along with cash on hand, will be used to redeem $200 million of outstanding 6% mortgage bonds due in 2014 and $250 million of 5% mortgage bonds due in 2015.

The natural gas and electric subsidiary of CMS Energy Corp. is based in Jackson, Mich.

Issuer:	Consumers Energy Co.
Issue:	First mortgage bonds
Amount:	$425 million
Maturity:	May 15, 2043
Bookrunners:	Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc., UBS Securities LLC, Wells Fargo Securities LLC
Co-managers:	PNC Capital Markets LLC, Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Loop Capital Markets LLC, MFR Securities Inc., Mischler Financial, Samuel A. Ramirez & Co. Inc., Williams Capital Group LP
Coupon:	3.95%
Price:	99.843
Yield:	3.959%
Spread:	Treasuries plus 85 bps
Call:	Make-whole at Treasuries plus 15 bps to Nov. 15, 2042, par call after
Trade date:	May 13
Settlement date:	May 17
Ratings:	Moody's: A2
	Standard & Poor's: A-
	Fitch: A-

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