In what has become a virtual rush to sell debt and preferreds electric and natural gas company CMS Energy (NYSE:CMS) has announced they will be selling a new baby bond issue.
Details have not been announced as of yet but the preliminary paperwork can be seen here.
The issue will have the ability to have deferred interest payments for up to 40 consecutive quarters without a default being declared. This is fairly typical in baby bond issues from utility companies.
CMS has 1 other 5.625% baby bond outstanding (NYSE:CMSA) which is trading at $24.37 for a current yield of 5.77%.