NiSource enters three-year $500 million term loan at Libor plus 95 bps

By Wendy Van Sickle

Columbus, Ohio, March 31 – NiSource Finance Corp. as borrower and NiSource Inc. as guarantor entered into a $500 million term loan agreement on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

PNC Bank, NA is the administrative agent; JPMorgan Chase Bank, NA the syndication agent; and Mizuho Bank, Ltd. the documentation agent.

NiSource may draw the funds from time to time until Sept. 30. The term loans mature March 31, 2019.

The initial interest rate is Libor plus 95 basis points, and the applicable margin can vary depending on the company’s credit ratings.

NiSource will also pay an unused fee of 17.5 bps for undrawn commitments through Sept. 30.

The agreement’s only financial covenant is a maximum debt-to-capitalization covenant set at 70%, consistent with NiSource Finance’s existing $1.5 billion third amended and restated revolving credit agreement.

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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