Consumers Energy Co. has sold $300 million of its 3.75% first mortgage bonds due 2050, to redeem its 5.65% bonds due April 15, 2020, of which $300 million is outstanding.

Interest on the bonds is payable semiannually in arrears on Feb. 15 and Aug. 15 of each year, starting Aug. 15. The bonds have a spread to benchmark Treasury of 100 basis points and were expected to be rated Aa3 by Moody's, A by S&P Global Ratings and A+ by Fitch Ratings.

The transaction is expected to settle May 28.

Barclays Capital Inc., Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc., PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc. acted as joint book-running managers. WR Securities LLC served as the sole co-manager.

Consumers Energy is a CMS Energy Corp. subsidiary.