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Financings And Capitalization | 9 Months Ended
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Sep. 30, 2016
Financings And Capitalization | 4:Financings and Capitalization Financings: Presented in the following table is a summary of major long-term debt transactions during the nine months ended September 30, 2016.
﻿ |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |
﻿ | Principal |  | Issue/Retirement |  |
﻿ | (In Millions) | Interest Rate |  | Date | Maturity Date |
﻿Debt issuances |  |  |  |  |  |  |  |
﻿CMS Energy, parent only |  |  |  |  |  |  |  |
﻿Senior notes |  | $ | 300 | 3.000 | % | May 2016 | May 2026 |
﻿Total CMS Energy, parent only |  | $ | 300 |  |  |  |  |
﻿Consumers |  |  |  |  |  |  |  |
﻿FMBs |  | $ | 450 | 3.250 | % | August 2016 | August 2046 |
﻿Total Consumers |  | $ | 450 |  |  |  |  |
﻿Total CMS Energy |  | $ | 750 |  |  |  |  |
﻿Debt retirements |  |  |  |  |  |  |  |
﻿Consumers |  |  |  |  |  |  |  |
﻿FMBs |  | $ | 173 | 5.500 | % | August 2016 | August 2016 |
﻿Total Consumers |  | $ | 173 |  |  |  |  |
﻿Total CMS Energy |  | $ | 173 |  |  |  |  |
﻿ Term Loan: In April 2016, CMS Energy reached an agreement to extend the maturity date of its $180 million term loan by one year, through April 2018. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. In June 2016, Consumers received authorization from FERC to have outstanding, at any one time, up to $800 million of secured and unsecured short-term securities for general corporate purposes. FERC also authorized Consumers to issue and sell up to $1.795 billion of secured and unsecured long-term securities for general corporate purposes. The authorization was effective July 1, 2016 and will terminate on June 30, 2018. Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 20 16:
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿In Millions
﻿ |  |  | Letters of Credit |
﻿Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available |
﻿CMS Energy, parent only |  |  |  |  |  |  |  |  |  |  |  |  |
﻿May 27, 2021 1,2 |  | $ | 550 |  | $ | - |  | $ | 1 |  | $ | 549 |
﻿Consumers |  |  |  |  |  |  |  |  |  |  |  |  |
﻿May 27, 2021 1,3 |  | $ | 650 |  | $ | - |  | $ | 7 |  | $ | 643 |
﻿November 23, 2017 3 |  |  | 250 |  |  | - |  |  | - |  |  | 250 |
﻿May 9, 2018 3 |  |  | 30 |  |  | - |  |  | 30 |  |  | - |
﻿
| 1 |  | In May 2016, the expiration date of this revolving credit agreement was extended from 2020 to 2021.
| 2 |  | During the nine months ended September 30, 2016, CMS Energy’s average borrowings totaled $3 million with a weighted-average interest rate of 1.68 percent. Obligations under this facility are secured by Consumers common stock.
| 3 |  | Obligations under this facility are secured by FMBs of Consumers.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the revolver’s available capacity, Consumers does not intend to issue commercial paper in an amount exceeding the available revolver capacity. At September 30, 20 16, $75 million of com mercial paper notes were outstanding under this program and are recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers. Dividend Restrictions: At September 30, 20 16, payment of dividends by CMS Energy on its common stock was limited to $4.3 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at September 30, 20 16, Consumers had $1.0 b illion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that under a variety of circumstances dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the nine months ended September 30, 2016, Consumers paid $361 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In April 2015, CMS Energy entered into an updated continuous equity offering program permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $100 million. Presented in the following table are the transactions that CMS Energy entered into under the program:
﻿ |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |
﻿ | Number of | Average | Proceeds |
﻿ | Shares Issued | Price per Share | (In Millions) |
﻿April – July 2015 | 888,610 |  | $ | 33.76 |  | $ | 30 |
﻿March 2016 | 1,449,171 |  |  | 41.40 |  |  | 60 |
﻿Total | 2,337,781 |  | $ | 38.50 |  | $ | 90 |
﻿
Consumers Energy Company [Member] |
Financings And Capitalization | 4:Financings and Capitalization Financings: Presented in the following table is a summary of major long-term debt transactions during the nine months ended September 30, 2016.
﻿ |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |
﻿ | Principal |  | Issue/Retirement |  |
﻿ | (In Millions) | Interest Rate |  | Date | Maturity Date |
﻿Debt issuances |  |  |  |  |  |  |  |
﻿CMS Energy, parent only |  |  |  |  |  |  |  |
﻿Senior notes |  | $ | 300 | 3.000 | % | May 2016 | May 2026 |
﻿Total CMS Energy, parent only |  | $ | 300 |  |  |  |  |
﻿Consumers |  |  |  |  |  |  |  |
﻿FMBs |  | $ | 450 | 3.250 | % | August 2016 | August 2046 |
﻿Total Consumers |  | $ | 450 |  |  |  |  |
﻿Total CMS Energy |  | $ | 750 |  |  |  |  |
﻿Debt retirements |  |  |  |  |  |  |  |
﻿Consumers |  |  |  |  |  |  |  |
﻿FMBs |  | $ | 173 | 5.500 | % | August 2016 | August 2016 |
﻿Total Consumers |  | $ | 173 |  |  |  |  |
﻿Total CMS Energy |  | $ | 173 |  |  |  |  |
﻿ Term Loan: In April 2016, CMS Energy reached an agreement to extend the maturity date of its $180 million term loan by one year, through April 2018. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. In June 2016, Consumers received authorization from FERC to have outstanding, at any one time, up to $800 million of secured and unsecured short-term securities for general corporate purposes. FERC also authorized Consumers to issue and sell up to $1.795 billion of secured and unsecured long-term securities for general corporate purposes. The authorization was effective July 1, 2016 and will terminate on June 30, 2018. Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 20 16:
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿In Millions
﻿ |  |  | Letters of Credit |
﻿Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available |
﻿CMS Energy, parent only |  |  |  |  |  |  |  |  |  |  |  |  |
﻿May 27, 2021 1,2 |  | $ | 550 |  | $ | - |  | $ | 1 |  | $ | 549 |
﻿Consumers |  |  |  |  |  |  |  |  |  |  |  |  |
﻿May 27, 2021 1,3 |  | $ | 650 |  | $ | - |  | $ | 7 |  | $ | 643 |
﻿November 23, 2017 3 |  |  | 250 |  |  | - |  |  | - |  |  | 250 |
﻿May 9, 2018 3 |  |  | 30 |  |  | - |  |  | 30 |  |  | - |
﻿
| 1 |  | In May 2016, the expiration date of this revolving credit agreement was extended from 2020 to 2021.
| 2 |  | During the nine months ended September 30, 2016, CMS Energy’s average borrowings totaled $3 million with a weighted-average interest rate of 1.68 percent. Obligations under this facility are secured by Consumers common stock.
| 3 |  | Obligations under this facility are secured by FMBs of Consumers.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the revolver’s available capacity, Consumers does not intend to issue commercial paper in an amount exceeding the available revolver capacity. At September 30, 20 16, $75 million of com mercial paper notes were outstanding under this program and are recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers. Dividend Restrictions: At September 30, 20 16, payment of dividends by CMS Energy on its common stock was limited to $4.3 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at September 30, 20 16, Consumers had $1.0 b illion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that under a variety of circumstances dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the nine months ended September 30, 2016, Consumers paid $361 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In April 2015, CMS Energy entered into an updated continuous equity offering program permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $100 million. Presented in the following table are the transactions that CMS Energy entered into under the program:
﻿ |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |
﻿ | Number of | Average | Proceeds |
﻿ | Shares Issued | Price per Share | (In Millions) |
﻿April – July 2015 | 888,610 |  | $ | 33.76 |  | $ | 30 |
﻿March 2016 | 1,449,171 |  |  | 41.40 |  |  | 60 |
﻿Total | 2,337,781 |  | $ | 38.50 |  | $ | 90 |
﻿

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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