NiSource gives early tender results for four series; three caps lifted

By Susanna Moon

Chicago, May 25 – NiSource Inc. gave an update in the tender offers by subsidiary NiSource Finance Corp. for four series of notes as of the early deadline at 5 p.m. ET on May 24 and raised the tender caps for three of the series.

As announced May 11, the company is tendering for any-and-all of 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.

Investors had tendered $319,308,000 of the 6.125% notes as of the early deadline, and all of the tendered notes were accepted for purchase, according to a company update on Thursday.

In the capped offers for three other series, the issuer is tendering for $200,922,000, up from $175 million, principal amount of its $476,027,000 6.4% notes due 2018; $244,883,000, up from $200 million, principal amount of its $500 million 6.8% notes due 2019; and $224,887,000, up from $220 million, principal amount of its $550 million 5.45% notes due 2020.

Holders had tendered $200,922,000 of the 6.4% notes, $289,417,000 of the 6.8% notes and $224,887,000 of the 5.45% notes as of the early date.

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; however, the tender caps have been reached for three note series and no more of those notes will be accepted for purchase.

The total purchase price will include an early tender premium of $30 per $1,000 principal amount of notes tendered by the early deadline.

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

Tendered notes may not be withdrawn after the early tender deadline.

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

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

As reported, the company sold $2 billion of guaranteed fixed-rate notes in two tranches on May 11.

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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