JACKSON, Mich., Dec. 7, 2004 (PRNewswire-FirstCall) — CMS Energy announced that it intends to offer $200 million in principal amount of Convertible Senior Notes due 2024, subject to market conditions. The Notes will be general unsecured obligations and rank equally in right of payment with other unsecured indebtedness of CMS. The Notes will be convertible at the option of the holder under certain circumstances prior to maturity into cash and shares of CMS’ common stock at a conversion price to be determined.
The company has granted the underwriters of the Notes an option for a period of 30 days to purchase up to an additional $30 million in principal amount of Notes. The net proceeds from this offering will be used by the company to redeem $180 million principal amount of outstanding 7% Extendible Tenor Rate- Adjusted Securities, plus accrued but unpaid interest and any associated option payment.
The offering is being made through an underwriting led by Deutsche Bank Securities Inc., J.P. Morgan Securities Inc. and Wachovia Capital Markets, LLC.
A shelf registration statement under which the Notes are being offered has been declared effective by the Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
This offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained when available from Deutsche Bank Securities Inc., 60 Wall St., Equity Capital Markets, 4th Floor, New York, N.Y. 10005, J.P. Morgan Securities Inc., Chase Distribution & Support Service, 1 Chase Manhattan Plaza, Floor 5B, New York, N.Y. 10081, or Wachovia Securities, Attn: Peg Gavin, 301 South College St., 4th Floor (NC0735), Charlotte, N.C. 28288.
CMS Energy is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.