Printer Friendly

CONSUMERS POWER ANNOUNCES IRREVOCABLE TRUST AGREEMENT TO REDEEM $500 MILLION OF FIRST MORTGAGE BONDS, ELIMINATE DEBT

 CONSUMERS POWER ANNOUNCES IRREVOCABLE TRUST AGREEMENT
 TO REDEEM $500 MILLION OF FIRST MORTGAGE BONDS, ELIMINATE DEBT
 JACKSON, Mich., Dec. 30 /PRNewswire/ -- In a continuation of its previously announced plan to reduce debt, Consumers Power Company, a unit of CMS Energy Corporation (NYSE: CMS), today announced the establishment of an irrevocable trust agreement which will be used to redeem $500 million of first mortgage bonds over the course of 1992. The establishment of the trust will allow the company to eliminate the debt from its year-end balance sheet.
 This reduction, which includes the redemption of $178 million of bonds announced earlier this month, and the reduction of approximately $475 million short-term and long-term bank debt in 1991, moves the company close to its target of retiring up to $1 billion of debt to further strengthen the financial position of Consumers Power.
 The following four series of bonds were previously called for redemption on Jan. 13, 1992:
 -- $55.0 million of 10.375 percent Series due 2009 at 105.69 percent, partial series redeemed
 -- $52.715 million of 10.375 percent Series due 1996 at 102.96 percent, full series redeemed
 -- $10.4 million of 10.625 percent Series due 1999 at 103.92 percent, partial series redeemed
 -- $60.0 million of 9.75 percent Series due 2006 at 104.71 percent, full series redeemed.
 Using the proceeds of the trust, the following eight series of bonds will be called for redemption or retired at maturity throughout 1992 on the dates and at various prices as indicated:
 -- $45.0 million of 10.375 percent Series due 2009 in part at par and in part at a premium of 105.69 percent on March 12, 1992 (see below), full series (remaining after Jan. 13 redemption) redeemed
 -- $5.32 million of 8.75 percent Series due 1997 at par on March 16, 1992, partial series redeemed
 -- $3.32 million of 9.125 percent Series due 1998 at par on March 16, 1992, partial series redeemed
 -- $9.55 million of 9.875 percent Series due 1996 on June 1, 1992, $9.3 million at par and $.250 million at 101.56 percent, full series redeemed
 -- $150.0 million of 9.0 percent Series due 1992 on June 15, 1992, at par, full series maturing
 -- $100.0 million of 9.625 percent Series due 1997 on June 15, 1992, at 102.61 percent, full series redeemed
 -- $5.2 million of 10.625 percent Series due 1999 on July 1, 1992, at par, full series (remaining after Jan. 13 redemption) redeemed
 -- $4.0 million of 13.875 percent Series due 1993 on Sept. 15, 1992, at par, partial series redeemed.
 Of the $45.0 million 10.375 percent Series due 2009, approximately $20.0 million will be called at par under the annual improvement fund provisions of the Indenture. The remaining $25.0 million will either be called at par under the maintenance and replacement and released property provisions of the Indenture (the amount of which will be known by early February 1992) or at a premium of 105.69 percent.
 Consumers Power Company, the principal subsidiary of CMS Energy Corporation, is Michigan's largest utility serving almost 6 million of the state's 9 million residents in 67 of the 68 Lower Peninsula counties.
 -0- 12/30/91
 /CONTACT: Charles MacInnis of Consumers Power Company, 517-788-2396/
 (CMS) CO: Consumers Power Company ST: Michigan IN: UTI SU:


SB-JG -- DE009 -- 5656 12/30/91 12:56 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 30, 1991
Words:577
Previous Article:SNO COUNTRY REPORTS OFFICIAL SKI REPORT
Next Article:SULCUS COMPUTER SIGNS CONTRACT TO AUTOMATE 350-ROOM BROWN PALACE HOTEL IN DENVER; 6TH RANK ORGANIZATION PROPERTY IN U.S. TO USE SULCUS SYSTEMS
Topics:


Related Articles
PUBLIC SERVICE ELECTRIC AND GAS COMPANY SELLS $450 MILLION OF MORTGAGE BONDS, REDEEMS HIGHER COST DEBT
PACIFICORP TO REDEEM FIRST MORTGAGE BONDS
TEXAS UTILITIES $425 MILLION SHELF DEBT RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
PUBLIC SERVICE ELECTRIC AND GAS COMPANY SELLS $600 MILLION OF MORTGAGE BONDS, ANNOUNCES PLAN TO REDEEM HIGHER-COST DEBT
PSE&G SELLS $250 MILLION OF MORTGAGE BONDS, ANNOUNCES PLAN TO REDEEM HIGHER-COST DEBT
WASHINGTON WATER POWER ANNOUNCES REDEMPTION OF BONDS
PENNSYLVANIA GAS AND WATER COMPANY ANNOUNCES REDEMPTION OF BONDS
DUKE POWER CO. TO REDEEM BONDS
FLORIDA POWER CALLS FOR REDEMPTION OF FIRST MORTGAGE BONDS
CONSUMERS POWER COMPANY TO REDEEM MORTGAGE BONDS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters