Filed under Rule 433

File No. 333-216355-01

 

Final Term Sheet

 

May 1, 2018

 

Issuer:

 

Consumers Energy Company

Security:

 

4.05% First Mortgage Bonds due 2048

Aggregate Principal Amount Offered:

 

$550,000,000

Maturity Date:

 

May 15, 2048

Coupon:

 

4.05%

Yield to Maturity:

 

4.110%

Spread to Benchmark Treasury:

 

+97 basis points

Benchmark Treasury Security:

 

2.750% due November 15, 2047

Benchmark Treasury Price and Yield:

 

92-17; 3.140%

Interest Payment Dates:

 

May 15 and November 15

First Interest Payment Date:

 

November 15, 2018

Public Offering Price:

 

98.971%

Optional Redemption:

 

Make-whole call at any time prior to November 15, 2047 at the Treasury rate plus 15 basis points and, thereafter, at par

Trade Date:

 

May 1, 2018

Settlement Date:

 

May 14, 2018 (T+9)

Expected Ratings:

 

Aa3 / A / A+ (Moody’s / S&P / Fitch)

 

 

Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time

Joint Book-Running Managers:

 

Goldman Sachs & Co. LLC

 

 

J.P. Morgan Securities LLC

 

 

KeyBanc Capital Markets Inc.

 

 

Mizuho Securities USA LLC

 

 

MUFG Securities Americas Inc.

 

 

PNC Capital Markets LLC

 

 

Scotia Capital (USA) Inc.

Co-Managers:

 

Drexel Hamilton, LLC

 

 

Loop Capital Markets LLC

CUSIP/ISIN:

 

210518 DB9 / US210518DB95

 

Consumers Energy Company has filed a registration statement (including a prospectus, as supplemented) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates.  Before you invest, you should read the prospectus (as supplemented) in that registration statement and other documents Consumers Energy Company has filed with the SEC for more complete information about Consumers Energy Company and this offering.  You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov.  Alternatively, Consumers Energy Company, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Goldman Sachs & Co. LLC toll-free at (866) 471-2526, Mizuho Securities USA LLC toll-free at (866) 271-7403, MUFG Securities Americas Inc. toll-free at (877) 649-6848 and J.P. Morgan Securities LLC collect at (212) 834-4533.

 

Any disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded.  Such disclaimers were automatically generated as a result of this communication being sent via email or another communication system.