Published on 9/5/2017 in the Prospect News Investment Grade Daily.
New Issue: NiSource sells $750 million 3.95% guaranteed notes due 2048 at 128 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Sept. 5 – NiSource, Inc. subsidiary NiSource Finance Corp. sold $750 million of 3.95% guaranteed notes due March 30, 2048 (Baa2/BBB+/BBB) on Tuesday at a spread of 128 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.892 to yield 3.956%.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to repurchase the company’s 6.125% notes due 2022, up to $175 million of its 6.4% notes due 2018, up to $200 million of its 6.8% notes due 2019 and up to $220 million of its 5.45% notes due 2020 and for general corporate purposes.
The securities are guaranteed by Merrillville, Ind., parent NiSource, a company with businesses in natural gas transmission, storage and distribution, and electricity generation, transmission and distribution.
| Issuer: | NiSource Finance Corp.
|
| Guarantor: | NiSource, Inc.
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| Amount: | $750 million
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| Description: | Guaranteed notes
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| Maturity: | March 30, 2048
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Huntington Investment Co., Scotia Capital (USA) Inc. and Williams Capital Group, LP
|
| Coupon: | 3.95%
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| Price: | 99.892
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| Yield: | 3.956%
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| Spread: | Treasuries plus 128 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps before Sept. 30, 2047; thereafter at par
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| Trade date: | Sept. 5
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| Settlement date: | Sept. 14
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB
|
| Distribution: | SEC registered
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