Hunton Andrews Kurth Advises Underwriters on $646 million Offering of Senior Secured Securitization Bonds

Hunton Andrews Kurth LLP acted as counsel to the Underwriters on an SEC-registered offering of $646 million aggregate principal amount of Senior Secured Securitization Bonds, Series 2023A (the “Bonds”) by Consumers 2023 Securitization Funding LLC (the “Issuer”), a special purpose entity, wholly-owned by Consumers Energy Company (“Consumers”), as sponsor, depositor and servicer. The Bonds were sold pursuant to a financing order issued by the Michigan Public Service Commission. The Bond proceeds were used by the Issuer to purchase securitization property from Consumers. In accordance with the financing order, Consumers will use the proceeds from the sale of its securitization property to reimburse itself for previously-incurred securitization costs associated with the retirement and recovery of the net book value of the D.E. Karn Units 1 and 2 coal-fired generation units. This offering closed on December 12, 2023.

The Issuer is organized as a Delaware limited liability company and the sole member of the Issuer is Consumers. The Issuer was formed for the purpose of purchasing, owning and administering securitization property, issuing the Bonds and performing activities incidental thereto.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick, Adam O'Brian, Brendan P. Harney, Matt Hayes, and Alice Yao. Jason Harbour assisted with certain bankruptcy advice, Shawn Regan and Kate Perkins assisted with certain constitutional law matters, Bob Hahn and Hilary Patterson Peet assisted with certain intercreditor matters, and George Howell, Anna Page and Zachary Roop provided tax advice, and Leslie Okinaka provided ERISA advice.