June 10, 2009 (FinancialWire) — CMS Energy (NYSE: CMS) has priced $150 million of 5.50 percent convertible senior notes due 2029 and $300 million of 8.75 percent senior notes due 2019.

The company said it may also issue up to an additional $22.5 million of convertible senior notes upon exercise of an option granted to the underwriters to cover over-allotments.

The convertible senior notes will pay interest semi-annually at a rate of 5.50 percent per annum and will mature on June 15, 2029. The convertible senior notes will be convertible under certain circumstances and during certain periods at an initial conversion rate representing an initial conversion price of around $14.46 per share of common stock.

CMS said that the initial conversion price represents a conversion premium of 25 percent over the last reported sale price of the common stock on June 9 of $11.57 per share. The convertible senior notes will be convertible prior to June 30, 2027. CMS said it may redeem some or all of the convertible senior notes for cash on or after June 20, 2014.

The senior notes will pay interest semi-annually at a rate of 8.75 percent per annum and will mature on June 15, 2019.

CMS plans to use the net proceeds from the offerings for the retirement of existing indebtedness and for general corporate purposes.

Jackson, Michigan-based CMS Energy has as its primary business operations an electric and natural gas utility, natural gas pipeline systems and independent power generation.

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