) announced that its finance subsidiary NiSource Finance Corp. has
sold $750 million notes in two tranches. NiSource's unit intends to
utilize the proceeds to meet its short-term obligation and for
general corporate purposes.
The first series consists of $250 million senior notes yielding
3.85% interest per year and maturing on February 15, 2023, while
the second series consists of $500 million senior notes yielding
5.25% interest per year and maturing on February 15, 2043. Fitch
rating agency assigned a "BBB -" rating with a Stable outlook for
The company issues notes from time to time, to meet its
financial obligations. Earlier, in November 2011, the company
issued $500 million senior notesin two tranches of $250 million
each. The first series of notes bears a coupon rate of 4.45%
maturing on December 1, 2021 while the second series of notes bears
a coupon rate of 5.80% maturing on February 1, 2042.The proceeds
from the issue were utilized to fund pension contribution and
partially fund the cash tender offer of two series of its
NiSource's long-term debts as of March 31, 2012, were $5.84
billion versus $6.27 billion as of December 31, 2011. The long-
term debt-to-equity ratio at the end of the first quarter 2012 was
58.2%, down from 60.0% at the end of 2011. However, with the latest
issue of the new notes the long-term debt to equity ratio will
increase to 61%.
NISource's first quarter earnings of 76 cents per share were
ahead of our estimate and the year-ago results. The company expects
earnings per share for 2012 to range between $1.40 and $1.50.
The Zacks Consensus Estimates for second-quarter 2012 and fiscal
2012 are currently at 20 cents per share and $1.45 per share,
NiSource Inc. currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. The operating margin of
the company lagged its peers
Dominion Resources Inc.
Duke Energy Corporation
) in the trailing twelve months.
Merrillville, Indiana based NiSource is an energy holding
company whose subsidiaries 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
DOMINION RES VA (D): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis
NISOURCE INC (NI): Free Stock Analysis Report
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