Printer Friendly

CMS ENERGY COMPLETES MCV ASSET TRANSFER

 CMS ENERGY COMPLETES MCV ASSET TRANSFER
 DEARBORN, Mich., Dec. 12 /PRNewswire/ -- CMS Energy Corporation


(NYSE: CMS) announced today the completion of the transfer to its Consumers Power Company subsidiary of all the assets related to its interests in the Midland Cogeneration Venture (MCV).
 Today's action follows the Michigan Public Service Commission's approval of a transfer plan filed with it by CMS Energy and Consumers Power. The transaction returns about $1.6 billion in cash, securities and MCV equity to Consumers Power and extinguishes a debenture originally issued by CMS Energy in exchange for the interests held in the MCV assets. As a result of the transaction, Consumers has received $988 million cash and $333 million of other assets.
 "This cash infusion will be used to retire debt and increase capital spending which will strengthen the financial health of, and improve the quality of service by Consumers Power Company," said William T. McCormick Jr., CMS Energy chairman and chief executive officer.
 Immediately prior to this transaction, CMS Energy entered into a $450 million secured revolving loan with Citibank and Union Bank, acting as co-agents for a syndicate of 13 lenders. The new loan replaces a $490 million loan to the CMS Energy subsidiary MEC Development Corp.
 In addition, Consumers today began its previously announced plan to reduce its outstanding long-term debt by up to $1 billion by the end of 1992 by providing notices of redemption, at various premiums, on four series of its outstanding first mortgage bonds as follows:
 -- $52.715 million of 10-3/8 percent Series due 1996 at 102.96 percent, full series redeemed;
 -- $10.4 million of 10-5/8 percent Series due 1999 at 103.92 percent, partial series redeemed;
 -- $60 million of 9-3/4 percent Series due 2006 at 104.71 percent, full series redeemed;
 -- $55 million of 10-3/8 percent Series due 2009 at 105.69 percent, partial series redeemed.
 Additional retirements of Consumers' long-term debt are expected to include repayment of a significant portion of its bank debt and further bond redemptions, in accordance with their terms or on the open market.
 CMS Energy Corporation is a $3 billion (sales) diversified energy company with businesses engaged in the distribution of electricity and natural gas, interstate storage and transmission of natural gas, oil and gas exploration and production, independent power generation and utility services. CMS Energy Corporation's principal subsidiary is Consumers Power Company, Michigan's largest utility and the nation's fourth- largest gas and electric utility.
 -0- 12/12/91
 /CONTACT: Charles MacInnis of Consumers Power Company, 517-788-2396/
 (CMS) CO: CMS Energy Corporation; Midland Cogeneration Venture; Consumers
 Power Company ST: Michigan IN: UTI SU:


SM -- DE025 -- 2080 12/12/91 15:43 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 12, 1991
Words:447
Previous Article:UNITHOLDERS APPROVE MESA CONVERSION TO CORPORATION
Next Article:XOMA TO RECEIVE PAYMENTS AND REPORTS ON USES AND SALES OF HA-1A FOLLOWING INFRINGEMENT VERDICT
Topics:


Related Articles
CMS ENERGY ANNOUNCES MCV BOND SALE
CONSUMERS POWER COMPANY ANNOUNCES COMPREHENSIVE AGREEMENT
CONSUMERS POWER ANNOUNCES UNCONDITIONAL MCV SUPPORT OF SETTLEMENT PROPOSAL
CMS ENERGY DEBT FILING RATED 'BB+/BB-' BY FITCH -- FITCH FINANCIAL WIRE --
CMS ENERGY ACCEPTS SETTLEMENT AND ANNOUNCES EARNINGS
U.S. SUPREME COURT REJECTS APPEALS OF MIDLAND COGENERATION VENTURE CERTIFICATION
CMS ENERGY SELLS MCB BONDS
MCV/CONSUMERS POWER ARBITRATION RULING ANNOUNCED
DCR Views Resolution of Consumers Power's Global Settlement Agreement as a Positive Credit Development
CMS Energy Announces Completion of Re-Powering Project At Its Mendoza, Argentina, Generation Plant.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters