NiSource gets tenders for $209.04 million of three series in offer

By Susanna Moon

Chicago, June 12 – NiSource Inc. said investors had tendered $209,036,000 of notes in the separate tender offers for its $255,117,000 of 6.8% notes due 2019, $325,113,000 of 5.45% notes due 2020 and $179,954,000 of 6.125% notes due 2022.

The breakdown for the results are as follows, with a purchase price for each $1,000 principal amount set at 11 a.m. ET on June 11 using a reference security plus a fixed spread:

• $70,005,000 of the 6.8% notes with a purchase price of $1,023.82, based on the 1.125% U.S. Treasury note due Jan. 15, 2019 plus 50 basis points;

• $106,032,000 of the 5.45% notes with a purchase price of $1,055.78, based on the 1.375% U.S. Treasury note due Sept. 15, 2020 plus 30 bps; and

• $32,999,000 of the 6.125% notes with a purchase price of $1,102.30, based on the 1.875% U.S. Treasury note due Feb. 28, 2022 plus 45 bps.

As announced June 4, each series of notes was originally issued by the company’s former wholly owned finance subsidiary NiSource Finance Corp. and then became obligations of the company on Nov. 30, 2017 after the company’s merger with NiSource Finance.

The tender offer ended at 5 p.m. ET on June 11.

Holders will also receive accrued interest up to but excluding the settlement date of June 12.

The offers were conditioned upon the company securing proceeds of at least $350 million from one or more capital markets issues.

NiSource closed separate private placements of $350 million of 3.65% notes due 2023 and 400,000 shares, representing an aggregate liquidation preference of $400 million of preferred stock, according to the company update on Tuesday.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476) is the dealer manager. D. F. King & Co., Inc. (866 342-1635 or 212 269-5550) is the tender 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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