NiSource Issues $600 Million Of Senior Notes
The company said it will use the proceeds from the issuance to complete the refinancing of outstanding debt scheduled to mature in November 2009 and for general corporate purposes, including refinancing a portion of outstanding debt scheduled to mature in November 2010.
NiSource CEO Robert C. Skaggs Jr. noted that the $600 million debt issuance, when combined with previously announced financing initiatives, "fully addresses the company's 2009 debt refinancing requirements, and puts the company well on its way toward meeting its 2010 refinancing needs of approximately $935 million."
The notes, which are guaranteed by NiSource, have a seven-year maturity and carry a coupon rate of 10.75 percent, with a yield to maturity of 11 percent. The book runners involved in the issuance were, LLC.
When NiSource reported its 2008 earnings on February 4, the company indicated that it had taken steps to reduce its 2009 financing needs from slightly in excess of $1 billion to around $500 million. On February 13, NiSource closed a $265 million two-year term loan, which it plans to increase to $350 million in April under an accordion feature in the financing agreement.
The company said that its 2009 financing needs are expected to be reduced by around an additional $100 million as a result of the bonus tax depreciation provisions contained in the Federal stimulus legislation enacted on February 17.
Merrillville, Indiana-based NiSource is engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the energy corridor stretching from the Gulf Coast through the Midwest to New England.
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