CMS Energy Announces Mandatory Conversion of its 4.50 Percent Cumulative Convertible Preferred Stock, Series B (CUSIP # 125896878)

JACKSON, Mich., Sept. 28 /PRNewswire-FirstCall/ -- CMS Energy (NYSE: CMS) announced today that it is exercising its mandatory conversion right related to all of its outstanding 4.50 percent Cumulative Convertible Preferred Stock (the "Convertible Preferred Stock").  The mandatory conversion date will be Sept. 30, 2010.  

Upon mandatory conversion, holders of the Convertible Preferred Stock will be entitled to receive the conversion value with respect to each share converted.  The conversion value per each share of Convertible Preferred Stock will be determined following the end of the averaging period referred to below and will equal the product of the conversion rate for the Convertible Preferred Stock, which is currently 5.5791 shares of CMS Energy Corporation's common stock per share of Convertible Preferred Stock, and the average of the closing sale prices of CMS Energy common stock on each of the 10 consecutive trading days beginning on and including Oct. 4, 2010 (the "Ten Day Average Stock Price").

The conversion value in respect of each share of Convertible Preferred Stock will be paid in the following forms of consideration:  cash up to $50.00 and, if the conversion value exceeds $50.00, shares of CMS Energy common stock having a value, based on the Ten Day Average Stock Price, equal to the excess of the conversion value over $50.00.  No payment or adjustment will be made upon conversion of the Convertible Preferred Stock for accumulated dividends with respect to the Convertible Preferred Stock.  Cash will be paid in lieu of fractional shares of CMS Energy common stock.

From and after the mandatory conversion date, dividends on the Convertible Preferred Stock will cease to accumulate and the Convertible Preferred Stock no longer will be deemed to remain outstanding and all rights of the holders with respect to the Convertible Preferred Stock will terminate, except the right to receive the amounts owing upon conversion as described above.

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

This news release contains forward-looking statements.  The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS", each found in CMS Energy's Form 10-K for the year ended December 31, 2009 and Forms 10-Q for the quarters ended March 31, 2010 and June 30, 2010. CMS Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference and discuss important factors that could cause CMS Energy's results to differ materially from those anticipated in such statements.

For more information on CMS Energy, please visit our web site at:  www.cmsenergy.com

SOURCE CMS Energy