I don’t really have a deal for you, but Consumers Energy, a division of CMS Energy (CMS), is selling a new floating rate first mortgage bond issue that is something to behold.
- Here are the terms–
- The issue matures in 2070.
- Interest will be paid quarterly
- Coupon will be 3 month Libor (currently .76%) MINUS .30%
- You will be able to ‘put’ your bonds back to the company starting in 2021 at 98% of face value.
With what we know today you will be lending the company money for darned near nothing–for a period of 50 years.
Of course there are many terms beyond the above, but the unfortunate part of the story is there will probably be buyers for these bonds.