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Do I Have a Deal for You!

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.

Here is the Preliminary Propectus.

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