CMS Energy falls after announcing planned $750 mln convertible bonds sale

CMS Energy

03/11/2025 13:38

** Shares of electric and gas utility CMS Energy CMS.N fall 1.8% premarket to $72.33 after unveiling capital raise to refinance debt

    ** Jackson, Michigan-based CMS announces private offering of $750 mln convertible bonds due 2031

** It intends to use net offering proceeds to retire its $250 mln outstanding 3.6% notes, which will mature on Nov 15, 2025, remainder for general corp purposes

** CMS has roughly $22.4 bln market cap

** Early Thurs, CMS posted Q3 earnings beat and forecasted higher 2026 earnings on robust power demand from AI data centers and hyperscalers

** Stock on Fri closed up 0.5% at $73.55, up about 10% YTD. In comparison, S&P 500 Utilities index .SPLRCU up 17.5% in 2025

    ** 9 of 17 analysts covering CMS rate stock "strong buy" or "buy", rest rate "hold"; median PT is $79.50, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))