NiSource Closes $265 Million Term Loan

--Can be expanded to $500 million; Proceeds to re-finance long-term debt, strengthen liquidity MERRILLVILLE, Ind., Feb 16, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- NiSource Inc. (NYSE: NI) today announced the initial closing of a $265 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. In addition, the facility includes an accordion feature under which can be expanded up to $500 million prior to final closing on April 15, 2009. 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. NiSource will use the proceeds of the term loan for general business purposes, including to re-finance outstanding debt scheduled to mature in November 2009 and to meet 2009 liquidity requirements, which include payments associated with the settlement of a class action lawsuit involving a former NiSource subsidiary. NiSource President and Chief Executive Officer Robert C. Skaggs Jr. noted that maintaining financial flexibility and adequate liquidity are key near- term priorities for NiSource, and that the company has developed a range of strategies to effectively address its financing and liquidity needs. The combined effect of these initiatives reduced the company's total projected 2009 financing requirements from nearly $1 billion to approximately $500 million. "The closing of this new term loan, along with the aggressive steps we have already taken, puts us well on the way toward meeting our 2009 financing requirements," Skaggs said. "I am confident that we will be successful in maintaining an adequate liquidity position for NiSource going forward." Skaggs noted that the company also is actively focused on its 2010 financing requirements and will continue to take advantage of market conditions to address those needs on an aggressive and opportunistic basis. As noted in NiSource's Feb. 4, 2009 earnings release, as of Dec. 31, 2008, NiSource had two outstanding short-term credit facilities; a five-year, $1.5 billion revolving credit facility extending to July 2011, and a six-month, $500 million facility extending to March 2009. With the closing of the $265 million two-year term loan, NiSource has terminated the six-month $500 million facility effective Feb. 13, 2009, as it is no longer needed to meet the company's liquidity needs. 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 report. SOURCE NiSource Inc. http://www.nisource.com Copyright (C) 2009 PR Newswire. All rights reserved

Now completely re-designed providing more clarity ...

Now completely re-designed providing more clarity ...

Now completely re-designed providing more clarity ...