NiSource accepts $250 million of 10.75%, 6.15% notes in tender offer

By Angela McDaniels

Tacoma, Wash., Dec. 13 - NiSource Inc.'s finance subsidiary, NiSource Finance Corp., received tenders for $125,329,000 of its 10.75% notes due 2016 and $228,705,000 of its 6.15% notes due 2013, according to a company news release.

The company accepted all of the 10.75% notes and $124,668,000 of the 6.15% notes on a pro rata basis.

The tender offers for the notes expired at 11:59 p.m. ET on Dec. 12.

NiSource Finance offered to purchase any and all of the $326,855,000 of 10.75% notes and an amount of the $545 million of 6.15% notes equal to $250 million minus the principal amount of 10.75% notes tendered.

If more than $250 million of 10.75% notes had been tendered, no 6.15% note would have been accepted for purchase.

For each $1,000 principal amount, the payment is $1,351.58 for the 10.75% notes and $1,062.22 for the 6.15% notes.

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

The payments include an early tender payment of $30.00 per note. When the offer began on Nov. 14, the company planned to pay the early tender payment only to holders who tendered by the early participation deadline, 5 p.m. ET on Nov. 22. On Nov. 22, it extended the early tender payment deadline to coincide with the offer expiration.

The settlement date was Nov. 28 for the $125,264,000 of 10.75% notes that were tendered by 5 p.m. ET Nov. 22.

The payments were set at 10 a.m. ET on Nov. 23 using a fixed spread over the yield to maturity of a reference Treasury security.

The reference Treasury was the 1% Treasury due Oct. 31, 2016 for the 10.75% notes and the 0.625% Treasury due Feb. 28, 2013 for the 6.15% notes. The fixed spread was 125 basis points for the 10.75% notes and 80 bps for the 6.15% notes.

All notes purchased in the offers will be retired.

The tender offers were subject to the issuance by NiSource Finance of at least $500 million principal amount of new debt securities. The company issued $250 million of 4.45% notes due 2021 and $250 million of 5.8% bonds due 2042 on Nov. 23.

The dealer manager for the tender offers was Citigroup at (212 723-6106 or 800 558-3745). The information agent and depositary was Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 540-1500).

NiSource transmits, stores and distributes natural gas. It is based in Merrillville, Ind.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.