By Andrea Heisinger
New York, Nov. 14 - NiSource Finance Corp. sold $500 million of senior notes (Baa3/BBB-/BBB-) in two tranches on Monday, a market source said.
A $250 million tranche of 4.45% 10-year notes was priced at 99.623 to yield 4.497% with a spread of Treasuries plus 245 basis points. The notes have a make-whole call at Treasuries plus 30 bps.
A $250 million tranche of 5.8% 30-year bonds sold at 99.783 to yield 5.816%, or Treasuries plus 275 bps. There is a make-whole call at Treasuries plus 45 bps.
Barclays Capital Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be contributed to the pension plans of NiSource, Inc. and certain subsidiaries and to fund a portion of the purchase price for cash tender offers.
The notes are guaranteed by NiSource.
The natural gas and electric generation, transmission and distribution company is based in Merrillville, Ind.
| Issuer: | NiSource Finance Corp.
|
| Guarantor: | NiSource, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Dec. 1, 2021
|
| Coupon: | 4.45%
|
| Price: | 99.623
|
| Yield: | 4.497%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Feb. 1, 2042
|
| Coupon: | 5.8%
|
| Price: | 99.783
|
| Yield: | 5.816%
|
| Spread: | Treasuries plus 275 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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