Michigan Strategic Fund to Remarket $75 Million of Bonds for Waste Facilities
By Josh Beckerman
The Michigan Strategic Fund is remarketing $75 million of bonds issued in 2019 in connection with the construction, improvement and installation of solid waste disposal facilities by Consumers Energy.
The Variable Rate Limited Obligation Revenue Bonds will mature in 2049, according to a document posted Wednesday on MuniOS. Consumers Energy is a unit of CMS Energy.
Preliminary pricing information wasn't provided. The interest rate will be set for term rate mode from Oct. 1, 2024 through Sept. 30, 2027. Bonds will be subject to mandatory purchase by Consumers Energy on Oct. 1, 2027. On and after the mandatory purchase date, the interest rate may be adjusted from time to time at the company's option, subject to certain restrictions.
The bonds are secured by the utility's pledge of payments under a 2019 loan agreement. According to the document, bond counsel believes interest is excludable from gross income for federal income tax purposes and is an item of tax preference for purposes of the alternative minimum tax.
The fund is involved in various economic development functions, such as approving grants and loans under the Michigan Business Development Program and the Michigan Community Revitalization Program. It issues private activity bonds on behalf of borrowers, and then lends them the proceeds. Loans can be made for manufacturing projects, for-profit corporation projects and waste disposal facilities.
KeyBanc Capital Markets is lead remarketing agent on the transaction.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
September 18, 2024 18:15 ET (22:15 GMT)
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