NiSource closes $750M junior subordinated notes offering
What's the deal? NiSourceDealroom has a profile for this one. Try Dealroom →, the US energy utility listed on the NYSE as NI, completed a $750 million offering of junior subordinated notes due in 2057 on 18 August 2026. The notes were priced at an initial rate of 6.250% per annum.
The terms. The notes carry a 6.250% rate through 15 April 2032, after which the rate resets every five years to the five-year US Treasury rate plus a 1.930% spread, with a floor of 6.250%. They are unsecured and subordinated to all of NiSource's senior debt, with interest paid semi-annually.
Where the money goes. NiSource intends to use the net proceeds for general corporate purposes, including capital expenditure, working capital and repaying existing debt.
Why it matters. The 30-year-plus maturity and junior subordinated ranking add to the company's long-dated financing profile. The notes also include an optional deferral feature, allowing NiSource to postpone interest payments for up to 20 consecutive semi-annual periods under certain conditions.
The signal. The $750 million raise is a sizeable debt financing for the listed utility, supporting continued capital spending while adding a long-dated layer to its capital structure.
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