NiSource Announces Final Closing of Term Loan

--Expanded to $385 million under accordion feature

MERRILLVILLE, Ind., April 9, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- NiSource Inc. (NYSE: NI) today announced the final closing of a $385 million senior unsecured term loan under attractive terms with a syndicate of lenders led by JP Morgan Chase Bank, N.A., and Wachovia Bank, N.A.

The new facility has a two-year term maturing Feb. 11, 2011. Borrowings under the facility will have an effective cost of LIBOR plus 538 basis points.

On Feb. 16, 2009, NiSource announced the initial closing of the term loan at the level of $265 million. Under an accordion feature, the company was able to increase the loan by $120 million prior to final closing.

In addition to JP Morgan Chase Bank, N.A., and Wachovia Bank, N.A., other lending participants in the term loan are Citigroup Global Markets Inc., Bank of America N.A., Credit Suisse, US Bank, N.A., Northern Trust Company and PNC Financial Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., CoBank, ACB, UBS Loan Finance LLC and Morgan Stanley Bank, N.A.

NiSource will use the proceeds of the term loan for general business purposes, including to refinance outstanding debt scheduled to mature in November 2009.

NiSource President and Chief Executive Officer Robert C. Skaggs Jr. noted that the successful final closing of the term loan is yet another step in NiSource's ongoing strategy to maintain financial flexibility and solid liquidity.

"During the past several months, NiSource has successfully executed a variety of strategies to address the company's financing and liquidity needs," Skaggs said. "These initiatives have helped fully satisfy NiSource's total projected 2009 financing requirements and put us well on the way toward addressing our 2010 financing needs. I remain confident that NiSource will be successful in maintaining its solid liquidity position going forward."

About NiSource

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com. NI-F

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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. These forward-looking statements include, but are not limited to, statements concerning NiSource's plans, objectives, expected performance, expenditures and recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are other than statements of historical fact. From time to time, NiSource may publish or otherwise make available forward-looking statements of this nature. All such subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NiSource, are also expressly qualified by these cautionary 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. Realization of NiSource's objectives and expected performance is subject to a wide range of risks and can be adversely affected by, among other things, weather, fluctuations in supply and demand for energy commodities, growth opportunities for NiSource's businesses, increased competition in deregulated energy markets, the success of regulatory and commercial initiatives, dealings with third parties over whom NiSource has no control, the effectiveness of NiSource's restructured outsourcing agreement, actual operating experience of NiSource's assets, the regulatory process, regulatory and legislative changes, changes in general economic, capital and commodity market conditions, and counterparty credit risk, many of which risks are beyond the control of NiSource. In addition, the relative contributions to profitability by each segment, and the assumptions underlying the forward- looking statements relating thereto, may change over time. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in this release.

SOURCE NiSource Inc.

http://www.nisource.com

Copyright (C) 2009 PR Newswire. All rights reserved