CMS Energy Corporation has issued $750 million of convertible senior notes due 2031 in a private placement, with an option for initial purchasers to buy an additional $112.5 million within 13 days after issuance.
The proceeds will be used to retire the company’s 3.60% senior notes due 2025, which have an outstanding principal of $250 million, and the remaining funds will be allocated to general corporate purposes, including capital expenditures under its $20 billion five‑year plan.
The company’s third‑quarter 2025 earnings showed an adjusted EPS of $0.93 versus $0.84 in the same quarter of 2024, and revenue of $2.02 billion versus $1.82 billion, indicating year‑over‑year growth. Management highlighted that the refinancing will lower borrowing costs and extend the debt maturity profile, providing financial flexibility for planned investments in electric reliability, renewable generation, and gas infrastructure.
CMS Energy’s Consumers Energy and independent power generation segments will benefit from the improved capital structure, allowing the company to pursue its decarbonization and grid resilience initiatives without increasing short‑term debt exposure.
The convertible notes are senior, unsecured, and convertible at the holder’s option, with semi‑annual interest payments, aligning with industry practices for utilities seeking to manage debt and fund large capital projects.
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