- Investment by Blackstone Infrastructure Partners affiliate
(“Blackstone”) to acquire a 19.9% indirect non-controlling equity
interest in NIPSCO for $2.16 billion, with an additional equity
commitment of $250 million to fund ongoing capital requirements,
strengthens NIPSCO’s financial foundation and supports sustainable
long-term growth.
- Blackstone invests alongside NiSource in NIPSCO to fund the
energy transition and to accelerate the reindustrialization of the
Midwest.
- NiSource reaffirms commitment to Indiana and to its
consolidated credit, earnings and growth commitments through
2028.
NiSource Inc. (NYSE: NI) (“NiSource”) today announced that it
has completed the issuance of a 19.9% indirect equity interest in
the company’s Northern Indiana Public Service Company LLC
(“NIPSCO”) subsidiary to an affiliate of Blackstone Infrastructure
Partners (“Blackstone Infrastructure”), the dedicated
infrastructure group of Blackstone Inc. (NYSE: BX). As previously
announced, through the transaction the Blackstone affiliate has
acquired a 19.9% non-controlling equity interest in NIPSCO Holdings
II LLC, which owns all the equity interests of NIPSCO, and NiSource
will own the remaining 80.1% of NIPSCO Holdings II LLC.
Blackstone Infrastructure is an active perpetual capital
investor across the utility, energy transition, transportation,
digital infrastructure, water and waste infrastructure sectors.
Blackstone Infrastructure seeks to apply a long-term buy-and-hold
approach to large-scale infrastructure assets and is focused on
responsible stewardship and stakeholder engagement to create value
for its investors and the communities it serves. Blackstone
Infrastructure is committed to investing behind NIPSCO's energy
transition and decarbonization programs, as well as helping to
increase gas and electric grid resiliency for the customers of
Indiana.
NiSource intends to use the capital infusion to support its
fastest growing utility and its ability to serve customers,
strengthen its balance sheet and fund ongoing capital needs
associated with the renewable generation transition underway. Since
2018, NIPSCO has been executing on one of the fastest transitions
from coal-fired electricity in the U.S. utilities sector, targeting
0% coal-fired generation mix by 2028 (compared to 75% coal
generation mix in 2018). Through 2030, NIPSCO expects to make
significant investments in its electric generation transition,
primarily focused on installing new renewable generation to replace
coal-fired generation retirements. NIPSCO also intends to support
the continued growth and modernization of its gas and electric
transmission and distribution systems, which will play critical
roles in the energy transition as NIPSCO continues to deliver a
reliable, diverse and sustainable energy mix, bringing customer,
environmental and economic benefits.
“We are pleased to announce the completion of this transaction
and are excited about the long-term partnership we have entered
into with Blackstone,” said NiSource president and CEO, Lloyd
Yates. “The transaction strengthens our balance sheet, supports our
financing plan and provides greater flexibility to execute on
high-quality capital investments that will enhance the safety,
reliability and sustainability of our gas and electric systems for
the benefit of our customers. It’s important to reinforce that our
commitment to Indiana remains unchanged, and we will continue to
drive sustainable growth for our stakeholders. This financing
transaction will have no impact on NIPSCO's current strategic
direction or on our commitment to our gas and electric customers in
Indiana.”
“We are incredibly excited to close this transaction and to
begin our long-term partnership with NiSource and NIPSCO,” said
Sebastien Sherman, Senior Managing Director, Blackstone
Infrastructure. “This investment underscores Blackstone’s
commitment to decarbonization to create value for our investors and
our desire to help facilitate the reindustrialization of the
Midwest. We are excited to invest behind NIPSCO, one of the fastest
growing utilities in the country with one of the nation’s fastest
decarbonization plans. Blackstone looks forward to supporting the
vital role that NIPSCO plays in communities across Northern
Indiana.”
NIPSCO is Indiana's largest vertically integrated electric and
gas distribution company, providing critical utility service to
almost 1.3 million customers in an economically robust service
territory, with a proven track record of providing value for its
customers. NIPSCO is at the forefront of the energy transition and
is developing one of the lowest-cost portfolios of renewable energy
projects, the majority of which are utility-owned, and intends to
retire all coal-fired generation by the end of 2028. These
near-term renewable and generation transition investments add to a
multi-decade capital plan with the goal to significantly grow
NIPSCO's rate base through investments across gas, electric
transmission and distribution and electric generation, which should
drive significant continued value for NIPSCO's customers. NIPSCO
operates in Indiana, one of the most constructive utility
jurisdictions in the United States, with strong support for
utility-owned generation and affordable energy, and a strong
economic service territory benefitting from on-shoring and
migration trends as well as robust development.
Advisors
Lazard Freres & Co. LLC served as lead financial advisor,
Goldman Sachs & Co. LLC served as co-financial advisor and
McGuireWoods LLP served as legal counsel to NiSource. Barclays
served as financial advisor and Latham & Watkins LLP and Paul,
Weiss, Rifkind, Wharton & Garrison LLP served as co-legal
counsel to Blackstone. Sumitomo Mitsui Banking Corporation provided
committed financing for the transaction.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated
utility companies in the United States, serving approximately 3.3
million natural gas customers and 500,000 electric customers across
six states through its local Columbia Gas and NIPSCO brands. The
mission of our approximately 7,200 employees is to deliver safe,
reliable energy that drives value to our customers. NiSource is a
member of the Dow Jones Sustainability - North America Index, has
been named as one of TIME Magazine’s World’s Best Companies and is
on Forbes list of America’s Best Employers for Diversity. Learn
more about NiSource’s record of leadership in sustainability,
investments in the communities it serves and how we live our vision
to be an innovative and trusted energy partner at www.NiSource.com.
NI-F
About Blackstone Infrastructure Partners
Blackstone Infrastructure Partners is an active investor across
energy, transportation, digital infrastructure and water and waste
infrastructure sectors. We seek to apply a long-term buy-and-hold
strategy to large-scale infrastructure assets with a focus on
delivering stable, long-term capital appreciation together with a
predictable annual cash flow yield. Our approach to infrastructure
investing is one that focuses on responsible stewardship and
stakeholder engagement to create value for our investors and the
communities we serve.
Forward-Looking Statements
This press release contains “forward-looking statements,” within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).
Forward-looking statements in this press release include, but are
not limited to, our business plans, strategies and objectives,
including development of our renewable energy projects, the
benefits of the issuance of the indirect, non-controlling minority
equity interest, and any and all underlying assumptions and other
statements that are other than statements of historical fact.
Investors and prospective investors should understand that many
factors govern whether any forward-looking statement contained
herein will be or can be realized. Any one of those factors could
cause actual results to differ materially from those projected.
Expressions of future goals and expectations and similar
expressions, including “may,” “will,” “should,” “could,” “would,”
“aims,” “seeks,” “expects,” “plans,” “anticipates,” “intends,”
“believes,” “estimates,” “predicts,” “potential,” “targets,”
“forecast,” and “continue,” reflecting something other than
historical fact are intended to identify forward-looking
statements. All forward-looking statements are based on assumptions
that management believes to be reasonable; however, there can be no
assurance that actual results will not differ materially.
Factors that could cause actual results to differ materially
from the projections, forecasts, estimates and expectations
discussed in this press release include, but are not limited to,
our ability to execute our business plan or growth strategy,
including utility infrastructure investments; potential incidents
and other operating risks associated with our business; our ability
to adapt to, and manage costs related to, advances in, or failures
of, technology; impacts related to our aging infrastructure; our
ability to obtain sufficient insurance coverage and whether such
coverage will protect us against significant losses; the success of
our electric generation strategy; construction risks and natural
gas costs and supply risks; fluctuations in demand from residential
and commercial customers; fluctuations in the price of energy
commodities and related transportation costs or an inability to
obtain an adequate, reliable and cost-effective fuel supply to meet
customer demands; the attraction and retention of a qualified,
diverse workforce and ability to maintain good labor relations; our
ability to manage new initiatives and organizational changes; the
actions of activist stockholders; the performance of third-party
suppliers and service providers; potential cybersecurity attacks;
increased requirements and costs related to cybersecurity; any
damage to our reputation; any remaining liabilities or impact
related to the sale of the Massachusetts Business; the impacts of
natural disasters, potential terrorist attacks or other
catastrophic events; the physical impacts of climate change and the
transition to a lower carbon future; our ability to manage the
financial and operational risks related to achieving our carbon
emission reduction goals, including our Net Zero Goal; our debt
obligations; any changes to our credit rating or the credit rating
of certain of our subsidiaries; any adverse effects related to our
equity units; adverse economic and capital market conditions or
increases in interest rates; inflation; recessions; economic
regulation and the impact of regulatory rate reviews; our ability
to obtain expected financial or regulatory outcomes; continuing and
potential future impacts from the COVID-19 pandemic; economic
conditions in certain industries; the reliability of customers and
suppliers to fulfill their payment and contractual obligations; the
ability of our subsidiaries to generate cash; pension funding
obligations; potential impairments of goodwill; the outcome of
legal and regulatory proceedings, investigations, incidents, claims
and litigation; potential remaining liabilities related to the
Greater Lawrence Incident; compliance with applicable laws,
regulations and tariffs; compliance with environmental laws and the
costs of associated liabilities; changes in taxation; and other
matters set forth in Item 1, “Business,” Item 1A, “Risk Factors”
and Part II, Item 7, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2022,
and matters set forth in our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2023, June 30, 2023 and September 30,
2023, some of which risks are beyond our control. In addition, the
relative contributions to profitability by each business segment,
and the assumptions underlying the forward-looking statements
relating thereto, may change over time.
All forward-looking statements are expressly qualified in their
entirety by the foregoing cautionary statements. We undertake no
obligation to, and expressly disclaim any such obligation to,
update or revise any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events
or changes to the future results over time or otherwise, except as
required by law.
Regulation G Disclosure Statement
This press release includes financial results and guidance for
NiSource with respect to net operating earnings available to common
shareholders, diluted earnings per share, and funds from
operations/debt, which are non-GAAP financial measures as defined
by the SEC's Regulation G. The company includes these measures
because management believes they permit investors to view the
company's performance using the same tools that management uses and
to better evaluate the company's ongoing business performance. With
respect to such guidance, it should be noted that there will likely
be a difference between these measures and their GAAP equivalents
due to various factors, including, but not limited to, fluctuations
in weather, the impact of asset sales and impairments, and other
unusual or infrequent items included in GAAP results. The company
is not able to estimate the impact of such factors on their GAAP
equivalents and, as such, is not providing such guidance on a GAAP
basis. In addition, the company is not able to provide a
reconciliation of its non-GAAP net operating earnings guidance or
its funds from operations/debt guidance to their GAAP equivalent
without unreasonable efforts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240102814933/en/
Media Lynne Evosevich
Corporate Media Relations (724) 288-1611
levosevich@nisource.com
Investors Christopher
Turnure Director, Investor Relations (614) 404-9426
cturnure@nisource.com
Nisource (NYSE:NI)
Historical Stock Chart
From Apr 2024 to May 2024
Nisource (NYSE:NI)
Historical Stock Chart
From May 2023 to May 2024