By Cristal Cody
Tupelo, Miss., June 12 – NiSource Inc. closed Monday on a $350 million Rule 144A and Regulation S private placement offering of notes, according to a news release and an 8-K filing with the Securities and Exchange Commission.
The company sold $350 million of 3.65% five-year notes at 99.854 to yield 3.682%, or a spread of Treasuries plus 87.5 basis points.
The bookrunners were Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC.
In addition to the notes, NiSource also closed Monday on $400 million, or 400,000 shares, of 5.65% fixed-rate reset cumulative redeemable perpetual preferred stock.
The company plans to use the proceeds to help fund a cash tender offer for any and all outstanding 6.8% notes due 2019, 5.45% notes due 2020 and 6.125% notes due 2022.
The Merrillville, Ind.-based company provides gas and electric utilities.
| Issuer: | NiSource Inc.
|
| Amount: | $350 million
|
| Maturity: | June 15, 2023
|
| Description: | Notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | KeyBanc Capital Market Inc. and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.65%
|
| Price: | 99.854
|
| Yield: | 3.682%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before May 15, 2023; thereafter at par
|
| Pricing date: | June 6
|
| Settlement date: | June 11
|
| Distribution: | Rule 144A, Regulation S, private
|
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