By Angela McDaniels
Tacoma, Wash., May 18 – NiSource Inc. said that its finance subsidiary NiSource Finance Corp. determined the prices it will pay in its cash tender offer for up to $750 million of its 5.25% notes due 2017, 6.4% notes due 2018, 4.45% notes due 2021 and 3.85% notes due 2023.
Pricing is noted in the table below. In ease case, the total consideration includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline, 5 p.m. ET on May 18.
Those who submit their notes after that date but before the offer expiration, 11:59 p.m. ET on June 2, will not receive the early tender premium.
NiSource will also pay accrued interest up to but excluding the settlement date.
Notes tendered by the early deadline will be accepted for purchase before those tendered afterwards, regardless of their acceptance priority level. If the offer is fully subscribed by the early deadline, then no subsequent tenders will be accepted.
NiSource is tendering for up to $275 million of its $450 million 5.25% notes, up to $300 million of its $800 million 6.4% notes, any and all of its $250 million 4.45% notes and any and all of its $250 million 3.85% notes. The notes are listed in order of acceptance priority level.
The offer began May 5 and is subject to conditions including the payment of a special dividend to NiSource by its Columbia Pipeline Group, Inc. business. Columbia Pipeline is expected to separate from NiSource and become a standalone publicly traded company.
Goldman Sachs & Co. (800 828-3182 or 212 902-6941) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) are the dealer managers. Global Bondholder Services Corp. (banks and brokers call 212 430-3774, others 866 470-4500) 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.
NiSource tender offer pricing
| Notes | Reference Treasury | Fixed spread | Reference yield | Total consideration
|
| 5.25% notes due 2017 | 1% Treasury due Sept. 15, 2017 | 25 bps | 0.742% | $1,097.50
|
| 6.4% notes due 2018 | 1% Treasury due March 15, 2018 | 30 bps | 0.910% | $1,143.55
|
| 4.45% notes due 2021 | 1.375% Treasury due April 30, 2020 | 90 bps | 1.533% | $1,116.89
|
| 3.85% notes due 2023 | 2% Treasury due Feb. 15, 2025 | 60 bps | 2.235% | $1,068.05
|
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