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NiSource remarketing of series C mandatory convertible preferred stock unsuccessful
By Abigail W. Adams
Portland, Me., Nov. 17 – NiSource Inc.’s remarketing of $862.5 million of its $1,000-par series C mandatory convertible preferred stock originally issued in April 2021 as part of its 7.75% equity units was unsuccessful, according to a company news release on Friday.
The final remarketing period ran from Nov. 13 to Nov. 17. Initial remarketing was attempted in mid-September but postponed due to market conditions.
The mandatory convertible preferred stock issued as part of the equity units will be deemed automatically delivered to NiSource as of Dec. 1, 2023 to satisfy the stock purchase agreement of the units.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC were remarketing agents.
The 7.75% equity units issued in 2021 consisted of a stock purchase agreement, which settles on Dec. 1, 2023, and a 10% interest in the series C mandatory convertible preferred stock.
The preferred stock was mandatorily convertible on March 1, 2024 at a minimum conversion rate of 34.9107 and maximum conversion rate of 41.0201.
If NiSource’s stock was $24.3738 or below at the date of the final day in the remarketing period, the minimum conversion rate would have been increased to the amount equal to $1,000 divided by 117.5% of the closing price.
The preferred stock carried no dividend but may have upon successful completion of the remarketing.
The company would not have directly received proceeds from the remarketing.
However, proceeds from the final remarketing attributable to the preferred stock would have been automatically applied to the equity unit holders’ stock purchase agreement with any remaining proceeds to be remitted to holders of the equity units.
NiSource is a Merrillville, Ind.-based utility company.
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