NiSource Inc. (NYSE:NI) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
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Entry into a Material Definitive Agreement |
On November28, 2016, NiSource Finance Corp. (NiSource Finance),
as borrower, and NiSource Inc. (the Company), as guarantor,
entered into a Fourth Amended and Restated Revolving Credit
Agreement (the Agreement) with the lenders party thereto,
Barclays Bank PLC, as Administrative Agent, JPMorgan Chase Bank,
N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as
Co-Syndication Agents, Citibank, N.A., Credit Suisse AG, Cayman
Islands Branch and Wells Fargo Bank, National Association, as
Co-Documentation Agents, and Barclays Bank PLC, JPMorgan Chase
Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Suisse
Securities (USA) LLC, Citigroup Global Markets, Inc. and Wells
Fargo Securities, LLC, as Joint Lead Arrangers and Joint
Bookrunners. The Agreement amends NiSource Finances existing $1.5
billion Revolving Credit Agreement to increase the facility by
$350 million to $1.85 billion and to extend the term from July1,
2020 until November28, 2021. Up to $150 million of the facility
will be available in the form of standby letters of credit.
NiSource Finance has the right to increase the facility by up to
an additional $500 million, subject to certain conditions and the
consent of the increasing lenders. The Agreement provides that
revolving loans will bear interest at the option of the Company
at:
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a rate equal to (A)the Alternate Base Rate (which is a floating rate equal to the highest of (i)the prime rate of interest announced by the Administrative Agent from time to time, (ii)the Federal Funds Rate in effect from time to time 0.50% and (iii)one-month reserve adjusted Eurodollar rate 1.0%) plus (B)an applicable margin (which applicable margin would be 7.5 basis points, based on the Companys current ratings), or |
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a rate equal to (A)the 1 week or 1, 2, 3 or 6-month Eurodollar rate plus (B)an applicable margin (which applicable margin would be 107.5 basis points, based on the Companys current ratings). |
Other than increasing the size of the facility and extending the
term, the Agreement substantially restates the existing Third
Amended and Restated Revolving Credit Agreement, including
representations and warranties, financial and other covenants and
events of default.
A copy of the Agreement is filed as Exhibit 10.1 to this Current
Report on Form 8-K and is incorporated herein by reference. The
foregoing discussion of the Agreement in this report is a summary
and is qualified in its entirety by the terms of the Agreement.
| Item2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant |
The information set forth under Item1.01 of this Current Report
on Form 8-K is incorporated by reference herein.
| Item9.01 | Financial Statements and Exhibits |
| (d) | Exhibits |
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Exhibit Number |
Description |
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| 10.1 |
Fourth Amended and Restated Revolving Credit Agreement, dated as of November28, 2016, among NiSource Finance Corp., as Borrower, NiSource Inc., the Lenders party thereto, Barclays Bank PLC, as Administrative Agent, JPMorgan Chase Bank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Co-Syndication Agents, Citibank, N.A., Credit Suisse AG, Cayman Islands Branch and Wells Fargo Bank, National Association, as Co-Documentation Agents, and Barclays Bank PLC, JPMorgan Chase Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Suisse Securities (USA) LLC, Citigroup Global Markets, Inc. and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Bookrunners. |
About NiSource Inc. (NYSE:NI)
NiSource Inc. is an energy holding company. The Company is engaged in the distribution of natural gas. The Company operates through two business segments: Gas Distribution Operations and Electric Operations. The Gas Distribution Operations segment provides natural gas service and transportation for residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana and Massachusetts. Its natural gas distribution operations operate approximately 59,000 miles of pipeline. The Electric Operations segment provides electric service in approximately 20 counties in the northern part of Indiana. The Company’s principal subsidiaries include NiSource Gas Distribution Group, Inc., a natural gas distribution holding company, and NIPSCO, a gas and electric company. NIPSCO owns and operates approximately three coal-fired electric generating stations. NiSource Finance Corporation (NiSource Finance) is a consolidated finance subsidiary of the Company. NiSource Inc. (NYSE:NI) Recent Trading Information
NiSource Inc. (NYSE:NI) closed its last trading session up +0.07 at 22.21 with 1,779,173 shares trading hands.
