In accordance with NiSource’s long-term financial plan, NiSource
Inc. (NYSE: NI) (“NiSource”) announced today the commencement of
the final remarketing of 862,500 shares of its Series C Mandatory
Convertible Preferred Stock, par value $0.01 per share, with a
liquidation preference of $1,000 per share (the “Mandatory
Convertible Preferred Stock”), originally issued on April 19, 2021
as part of NiSource’s equity units (“2021 Equity Units”).
Currently, the Mandatory Convertible Preferred Stock bears no
dividends and is convertible only upon the occurrence of certain
fundamental change events. On March 1, 2024, each outstanding share
of the Mandatory Convertible Preferred Stock will automatically
convert into a number of shares of NiSource common stock between
34.9528 and 41.0695 shares of common stock (in each case, subject
to customary anti-dilution adjustments), depending on the average
of the daily volume weighted average prices of the common stock
over a 40 trading day period preceding March 1, 2024. If the
closing price of NiSource common stock on the date of the pricing
of the final remarketing of the Mandatory Convertible Preferred
Stock is $24.3490 (subject to customary anti-dilution adjustments)
or less, the minimum conversion rate will be increased to an amount
equal to $1,000 divided by 117.5% of such closing price.
In connection with a successful final remarketing of the
Mandatory Convertible Preferred Stock, dividends may become payable
on the Mandatory Convertible Preferred Stock. If dividends become
payable, they will be paid in cash when, as and if declared by
NiSource’s board of directors out of funds legally available for
the payment of dividends, on March 1, 2024. While NiSource
currently anticipates these terms to be in effect after a
successful final remarketing, the actual terms of the remarketed
Mandatory Convertible Preferred Stock are subject to a successful
final remarketing and will be subsequently determined by NiSource
and the remarketing agents.
Upon a successful final remarketing, a portion of the proceeds
from the final remarketing attributable to shares of Mandatory
Convertible Preferred Stock that were components of the 2021 Equity
Units will be automatically applied to satisfy in full the 2021
Equity Unit holders’ obligations to purchase NiSource common stock
under the purchase contract component of their 2021 Equity Units,
and any remaining proceeds will be promptly remitted to the holders
of the 2021 Equity Units after the remarketing settlement date.
Goldman Sachs & Co. LLC, J.P. Morgan and Wells Fargo
Securities are acting as the remarketing agents and BofA
Securities, PNC Capital Markets LLC and Scotiabank are acting as
co-remarketing agents for this final remarketing.
The final remarketing is being made pursuant to an effective
registration statement filed with the U.S. Securities and Exchange
Commission. Any offers to remarket the Mandatory Convertible
Preferred Stock will be made exclusively by means of a prospectus
supplement and accompanying prospectus. Copies of the prospectus
supplement and accompanying prospectus relating to the remarketing
may be obtained from (i) Goldman Sachs & Co. LLC, Attn:
Prospectus Department, 200 West Street, New York, NY 10282, by
phone at (866) 471-2526 or by email at
prospectus-ny@ny.email.gs.com, (ii) J.P. Morgan Securities LLC, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood,
NY 11717 or by telephone at (866) 803-9204 or by email at
prospectus-eq_fi@jpmchase.com or (iii) Wells Fargo Securities, LLC,
at 500 West 33rd Street, New York, New York, 10001, Attn: Equity
Syndicate Department, by calling toll free 1-800-326-5897, or by
e-mail at cmclientsupport@wellsfargo.com.
About NiSource
References in this press release to “NiSource” refer to NiSource
Inc. and “we,” “us” or “our” refer collectively to NiSource and its
subsidiaries.
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated
utility companies in the United States, serving approximately 3.2
million natural gas customers and 500,000 electric customers across
six states through its local Columbia Gas and NIPSCO brands. Based
in Merrillville, Indiana, NiSource's approximately 7,500 employees
are focused on safely delivering reliable and affordable energy to
our customers and communities we serve. NiSource is a member of the
Dow Jones Sustainability Index - North America. NI-F
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, statements concerning our ability to complete the
final remarketing on the anticipated timeline or at all, the
anticipated benefits of the final remarketing if completed, our
plans, strategies and objectives, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20231114140892/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
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