NiSource begins one-month any-and-all, capped tenders for four series

By Susanna Moon

Chicago, May 11 – NiSource Inc. said subsidiary NiSource Finance Corp. has begun cash tender offers for four series of notes, one for any and all of one series of notes and three offers for maximum amounts of other note series.

NiSource plans to fund the offers with some proceeds from the sale of long-term debt securities in a public offering, according to a company announcement.

In the any-and-all offer, the company is tendering for its $500 million 6.125% notes due 2022 with pricing to be set using the 1.875% U.S. Treasury note due April 30, 2022 plus 55 basis points.

In the capped offers, the issuer is tendering for up to $175 million principal amount of its $476,027,000 6.4% notes due 2018, up to $200 million principal amount of its $500 million 6.8% notes due 2019 and up to $220 million principal amount of its $550 million 5.45% notes due 2020.

Pricing for the capped offers will be set using a reference security plus a fixed spread as follows:

• For the 6.4% notes, the 1% U.S. Treasury note due March 15, 2018 plus 30 bps;

• For the 6.8% notes, the 1.125% U.S. Treasury note due Jan. 15, 2019 plus 50 bps; and

• For the 5.45% notes, the 1.5% U.S. Treasury note due May 15, 2020 plus 70 bps.

The tender offers will continue until 11:59 p.m. ET on June 8.

The total purchase price will include an early tender premium of $30 per $1,000 principal amount of notes tendered by the early deadline 5 p.m. ET on May 24.

Holders also will receive accrued interest up to but excluding the settlement date of May 26.

Tendered notes may be withdrawn before the early tender deadline.

The offers do not include a minimum tender condition but are contingent on financing.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424), Barclays (800 438-3242 or 212 528-7581), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476) and MUFG Securities Americas Inc. (877 744-4532 or 212 405-7481) are the dealer managers. D.F. King & Co., Inc. (212 269-5550 or 866 342-1635) is the tender and information agent.

NiSource is a Merrillville, Ind., company with businesses in natural gas transmission, storage and distribution, and electricity generation, transmission and distribution.

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