NiSource Closes $265 Million Term Loan
NI) today announced the initial closing of a
term loan under attractive terms with a syndicate of lenders led by JP Morgan
Chase Bank, N.A., and Wachovia Bank, N.A.
The new facility has a two-year term maturing
under the facility will have an effective cost of LIBOR plus 538 basis points.
In addition, the facility includes an accordion feature under which can be
expanded up to
In addition to JP Morgan Chase Bank, N.A., and Wachovia Bank, N.A., other
lending participants in the term loan are Citigroup Global Markets Inc., Bank
of America N.A., Credit Suisse, US Bank, N.A., Northern Trust Company and PNC
Financial Corporation.
NiSource will use the proceeds of the term loan for general business
purposes, including to re-finance outstanding debt scheduled to mature in
associated with the settlement of a class action lawsuit involving a former
NiSource subsidiary.
NiSource President and Chief Executive Officer
that maintaining financial flexibility and adequate liquidity are key near-
term priorities for NiSource, and that the company has developed a range of
strategies to effectively address its financing and liquidity needs. The
combined effect of these initiatives reduced the company’s total projected
2009 financing requirements from nearly
million
“The closing of this new term loan, along with the aggressive steps we
have already taken, puts us well on the way toward meeting our 2009 financing
requirements,” Skaggs said. “I am confident that we will be successful in
maintaining an adequate liquidity position for NiSource going forward.”
Skaggs noted that the company also is actively focused on its 2010
financing requirements and will continue to take advantage of market
conditions to address those needs on an aggressive and opportunistic basis.
As noted in NiSource’s
NiSource had two outstanding short-term credit facilities; a five-year,
billion
million
facility effective
company’s liquidity needs.
About NiSource
NiSource Inc. (NYSE: NI), based in
company 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 high-
demand energy corridor stretching from the Gulf Coast through the Midwest to
New England. Information about NiSource and its subsidiaries is available via
the Internet at www.nisource.com. NI-F
Forward-Looking Statements
This news release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Investors and prospective
investors should understand that many factors govern whether any forward-
looking statement contained herein will be or can be realized. Any one of
those factors could cause actual results to differ materially from those
projected. These forward-looking statements include, but are not limited to,
statements concerning NiSource’s plans, objectives, expected performance,
expenditures and recovery of expenditures through rates, stated on either a
consolidated or segment basis, and any and all underlying assumptions and
other statements that are other than statements of historical fact. From time
to time, NiSource may publish or otherwise make available forward-looking
statements of this nature. All such subsequent forward-looking statements,
whether written or oral and whether made by or on behalf of NiSource, are also
expressly qualified by these cautionary statements. All forward-looking
statements are based on assumptions that management believes to be reasonable;
however, there can be no assurance that actual results will not differ
materially. Realization of NiSource’s objectives and expected performance is
subject to a wide range of risks and can be adversely affected by, among other
things, weather, fluctuations in supply and demand for energy commodities,
growth opportunities for NiSource’s businesses, increased competition in
deregulated energy markets, the success of regulatory and commercial
initiatives, dealings with third parties over whom NiSource has no control,
the effectiveness of NiSource’s restructured outsourcing agreement, actual
operating experience of NiSource’s assets, the regulatory process, regulatory
and legislative changes, changes in general economic, capital and commodity
market conditions, and counterparty credit risk, many of which risks are
beyond the control of NiSource. In addition, the relative contributions to
profitability by each segment, and the assumptions underlying the forward-
looking statements relating thereto, may change over time. NiSource expressly
disclaims a duty to update any of the forward-looking statements contained in
this report.
SOURCE NiSource Inc.