By Andrea Heisinger
New York, June 11 - NiSource Finance Corp. priced $750 million of notes (Baa3/BBB-/BBB-) in two parts on Monday, a source close to the trade said.
The company sold $250 million of 3.85% notes due 2023 at 99.593 to yield 3.896%, a spread of Treasuries plus 230 basis points. The notes were sold tighter than talk in the range of 240 bps to 245 bps, the source said.
There is a make-whole call at Treasuries plus 35 bps until Nov. 15, 2022 and a par call after that date.
A second tranche was $500 million of 5.25% bonds due 2043 that priced at 99.864 to yield 5.258%, or a spread of 255 bps over Treasuries. The bonds also priced tighter than guidance for a spread in the 260 bps to 265 bps range.
The tranche has a make-whole call at 40 bps over Treasuries until Aug. 15, 2042 with a par call after that date.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were bookrunners.
Senior co-managers were Mizuho Securities USA Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc.
Co-managers were BNY Mellon Capital Markets LLC, Fifth Third Securities Inc. and Huntington Investment Co.
Proceeds are being used to repay short-term borrowings under a revolving credit facility and commercial paper program, and for general corporate purposes.
The deal is guaranteed by NiSource Inc.
The energy holding company is based in Merrillville, Ind.
| Issuer: | NiSource Finance Corp.
|
| Guarantor: | NiSource Inc.
|
| Issue: | Notes
|
| Amount: | $750 million
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | Mizuho Securities USA Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc.
|
| Co-managers: | BNY Mellon Capital Markets LLC, Fifth Third Securities Inc., Huntington Investment Co.
|
| Trade date: | June 11
|
| Settlement date: | June 14
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Ten-year notes
|
| Amount: | $250 million
|
| Maturity: | Feb. 15, 2023
|
| Coupon: | 3.85%
|
| Price: | 99.593
|
| Yield: | 3.896%
|
| Spread: | Treasuries plus 230 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until Nov. 15, 2022, after at par
|
| Price talk: | 240 to 245 bps
|
|
|
| Notes due 2043
|
| Amount: | $500 million
|
| Maturity: | Feb. 15, 2043
|
| Coupon: | 5.25%
|
| Price: | 99.864
|
| Yield: | 5.258%
|
| Spread: | Treasuries plus 255 bps
|
| Call: | Make-whole at Treasuries plus 40 bps until Aug. 15, 2042, after at par
|
| Price talk: | 260 to 265 bps
|
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