NiSource prices $1.65B 5.35% & 5.85% notes; yields 5.36%-6.01%

NiSource Inc. (NYSE: NI) has priced two tranches of SEC-registered senior unsecured notes that will raise $1.65 billion in aggregate principal.

Rhea-AI Filing Summary

NiSource Inc. (NYSE: NI) has priced two tranches of SEC-registered senior unsecured notes that will raise $1.65 billion in aggregate principal.

2035 Notes: $900 million 5.350% notes due July 15, 2035 were priced at 99.889% to yield 5.364% (T + 105 bps). Net proceeds before expenses are expected to be $893.151 million. The notes carry optional redemption at make-whole plus 20 bps prior to April 15 2035, and at par thereafter.

2055 Notes (Reopening): $750 million of 5.850% notes due April 1, 2055 were priced at 97.851% (plus accrued interest) to yield 6.005% (T + 115 bps). Combined with the $750 million issued on March 27 2025, total outstanding of this series will be $1.5 billion. Net proceeds before expenses are projected at $727.320 million. Make-whole redemption applies prior to October 1 2054; par call thereafter.

Both tranches are rated Baa2 / BBB+ / BBB (stable) by Moody’s, S&P, and Fitch, respectively. Settlement is expected on June 27 2025 (T+4). BMO Capital Markets, BNP Paribas, J.P. Morgan, PNC Capital Markets, Scotia Capital and U.S. Bancorp act as joint book-running managers.

Positive

• Locks in long-term fixed rates of 5.350% (10-yr) and 5.850% (30-yr), providing cost certainty amid rate fluctuations.

Negative

• Total 2055 series outstanding rises to $1.5 billion, increasing absolute debt obligations.

Insights

Financial Analyst

TL;DR – Routine refinancing: $1.65 billion 10- & 30-year notes, investment-grade, moderate spreads.

The offering provides NiSource with long-dated, fixed-rate capital at 105-115 bp over Treasuries, broadly in line with investment-grade utility peers. By reopening the 2055 series, the company doubles that tranche to $1.5 billion, locking in sub-6% funding for 30 years ahead of potential rate volatility. Proceeds and use of funds are not disclosed in this term sheet, so leverage impact cannot be assessed here. Overall, the transaction appears typical and does not signal material credit deterioration or improvement.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much debt is NiSource (NI) issuing in the June 2025 offering?

NiSource is issuing $900 million of 2035 notes and $750 million of 2055 notes, totaling $1.65 billion.

What are the coupon rates and yields on NiSource’s new notes?

2035 notes carry a 5.350% coupon and 5.364% yield; 2055 notes have a 5.850% coupon and 6.005% yield.

When do the new NiSource notes mature?

The 2035 notes mature on July 15 2035; the reopened 2055 notes mature on April 1 2055.

What are the credit ratings of NiSource’s 2035 and 2055 notes?

Both tranches are rated Baa2 by Moody’s, BBB+ by S&P, and BBB by Fitch, all with stable outlooks.

When is the expected settlement date for the NiSource note offering?

The notes are expected to settle on June 27 2025 (T+4).

Who are the joint book-running managers for the NiSource debt issuance?

BMO Capital Markets, BNP Paribas, J.P. Morgan, PNC Capital Markets, Scotia Capital, and U.S. Bancorp lead the syndicate.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/23/2025 - 05:27 PM Learn about SEC filing dates

Filed Pursuant to Rule 433

Registration Statement (No. 333-268084)

June 23, 2025

NiSource Inc.

$900,000,000 5.350% Notes due 2035

$750,000,000 5.850% Notes due 2055

PRICING TERM SHEET

(To Preliminary Prospectus Supplement dated June 23, 2025 (the “Preliminary Prospectus Supplement”))

 

Issuer:	  	NiSource Inc.
Security:	  	5.350% Notes due 2035 (the “ 2035 Notes”) 5.850% Notes due 2055 (the “2055 Notes” and, together with the 2035 Notes, the “Notes”)
Ratings (Moody’s; S&P; Fitch)*:	  	Baa2 (stable)/BBB+ (stable)/BBB (stable)
Size (aggregate principal amount):	  	2035 Notes: $900,000,000 2055 Notes: $750,000,000 (Reopening of 5.850% Notes due 2055, of which $750,000,000 was previously issued on March 27, 2025, for a total principal amount outstanding of $1,500,000,000)
Public Offering Price:	  	2035 Notes: 99.889% of the principal amount 2055 Notes: 97.851% of the principal amount (plus accrued interest of $10,968,750 from and including March 27, 2025 to, but excluding, the delivery date)
Underwriting Discount:	  	2035 Notes: 0.650% of the principal amount 2055 Notes: 0.875% of the principal amount
Net Proceeds, Before Expenses, to the Issuer:	  	2035 Notes: $893,151,000 2055 Notes: $727,320,000 (excluding accrued interest)
Maturity Date:	  	2035 Notes: July 15, 2035 2055 Notes: April 1, 2055
Benchmark Treasury:	  	2035 Notes: 4.250% due May 15, 2035 2055 Notes: 4.625% due February 15, 2055
Benchmark Treasury Price/Yield:	  	2035 Notes: 99-15+ / 4.314% 2055 Notes: 96-13 / 4.855%

Spread to Benchmark Treasury:	  	2035 Notes: T+105 basis points 2055 Notes: T+115 basis points
Yield to Maturity:	  	2035 Notes: 5.364% 2055 Notes: 6.005%
Optional Redemption Terms:	  	2035 Notes: Make-whole call at any time prior to April 15, 2035 (the “2035 Par Call Date”) at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1)(a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2035 Notes matured on the 2035 Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the Preliminary Prospectus Supplement) applicable to the 2035 Notes plus 20 basis points less (b) interest accrued to the date of redemption and (2) 100% of the principal amount of the 2035 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date.   Callable on or after the 2035 Par Call Date at a redemption price equal to 100% of the principal amount of the 2035 Notes being redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date.   2055 Notes: Make-whole call at any time prior to October 1, 2054 (the “2055 Par Call Date”) at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1)(a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2055 Notes matured on the 2055 Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate applicable to the 2055 Notes plus 20 basis points less (b) interest accrued to the date of redemption and (2) 100% of the principal amount of the 2055 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date.

	  	Callable on or after the 2055 Par Call Date at a redemption price equal to 100% of the principal amount of the 2055 Notes being redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date.
Coupon (interest rate):	  	2035 Notes: 5.350% 2055 Notes: 5.850%
Interest Payment Dates:	  	2035 Notes: January 15 and July 15 of each year, beginning January 15, 2026 (long first interest period) 2055 Notes: April 1 and October 1 of each year, beginning October 1, 2025
Initial Interest Accrual Date:	  	2035 Notes: June 27, 2025 2055 Notes: March 27, 2025
Format:	  	SEC Registered
Transaction Date:	  	June 23, 2025
Expected Settlement Date**:	  	June 27, 2025 (T+4)
CUSIP/ISIN:	  	2035 Notes: 65473P AX3 / US65473PAX33 2055 Notes: 65473P AU9 / US65473PAU93
Joint Book-Running Managers:	  	BMO Capital Markets Corp. BNP Paribas Securities Corp. J.P. Morgan Securities LLC PNC Capital Markets LLC Scotia Capital (USA) Inc. U.S. Bancorp Investments, Inc.
Senior Co-Manager:	  	Huntington Securities, Inc.
Co-Managers:	  	Academy Securities, Inc. Siebert Williams Shank & Co., LLC

 

* Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

** We expect to deliver the Notes against payment for the Notes on or about June 27, 2025, which will be the fourth business day following the date of the pricing of the Notes. Under Rule 15c6-1 under the Securities Exchange Act of 1934, as amended, trades in the secondary market generally are required to settle in one business day, unless the parties to a trade expressly agree otherwise. Accordingly, purchasers who wish to trade Notes on any date prior to the first business day before delivery of the Notes will be required, by virtue of the fact that the Notes

  initially will settle in T+4, to specify alternative settlement arrangements to prevent a failed settlement. Purchasers of the Notes who wish to trade the Notes on any date prior to the first business day before delivery of the Notes should consult their own advisors.

The issuer has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling BMO Capital Markets Corp. toll-free at (888) 200-0266, BNP Paribas Securities Corp. toll-free at (800) 854-5674, J.P. Morgan Securities LLC collect at (212) 834-4533, PNC Capital Markets LLC toll-free at (855) 881-0697, Scotia Capital (USA) Inc. toll-free at (800) 372-3930 or U.S. Bancorp Investments, Inc. toll-free at (877) 558-2607.