) ancillary NiSource Finance Corp. concluded the sale of $750
million, 4.80% Series 1, long-term notes due Feb 15, 2044. The
company will utilize the net proceeds to finance its short-term
obligations under the commercial paper program and for general
corporate purposes. In addition, the proceeds will be used for
supporting NiSource's infrastructure investments.
As of Dec 31, 2012 NiSource's long-term debt increased 8.8% to
$6,819.1 million from $6,267.1 million in 2011. The current debt
to capital ratio of the company stands at 44.8%. With the current
issuance, the debt to capital ratio would increase to 61.45%. It
often engages in notes issuance especially to repay its
In 2012, the company issued long-term debt worth $991.4
million and redeemed debt worth $331.6 million. In addition,
NiSource is already experiencing higher interest expenses on its
long-term debts which increased 9.7% from 2011 levels. We
believe the current issuance would further add to the company's
However, the company's strong operating cash flow growth of
46.6% to $1,275.5 million in 2012 from $870.2 million in 2011, as
well as a whopping 215.6% increase in cash balance in 2012 will
aid in effectively tackling the interest burden.
Presently, the company carries a Zacks Rank #3 (Hold). Other
utility stocks we presently prefer are Zacks Ranked #1 (Strong
Brookfield Infrastructures Partners L.P.
Pike Electric Corporation
Empresa Nacional Electricidad SA
Headquartered in Merrillville, Ind., NiSource is an energy
holding company the subsidiaries of which provide natural gas,
electricity and other products and services in the U.S. Its
operating subsidiaries deliver energy to customers within the
high-demand energy corridor, stretching from the Gulf Coast
through the Midwest to New England.
BROOKFIELD INFR (BIP): Free Stock Analysis
ENDESA-CHILE (EOC): Free Stock Analysis
NISOURCE INC (NI): Free Stock Analysis Report
PIKE ELECTRIC (PIKE): Free Stock Analysis
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