NiSource Issues $600 Million in Senior Unsecured Notes

--S&P affirms investment grade rating, revises outlook to 'stable' MERRILLVILLE, Ind., March 9, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- NiSource Inc. (NYSE: NI) today announced that its finance subsidiary, NiSource Finance Corp., has issued $600 million of senior unsecured notes in an underwritten offering. NiSource will use the proceeds from the issuance to complete the refinancing of outstanding debt scheduled to mature in November 2009 and for general corporate purposes, including refinancing a portion of outstanding debt scheduled to mature in November 2010. The notes, which are guaranteed by NiSource Inc., have a seven-year maturity and carry a coupon rate of 10.75 percent, with a yield to maturity of 11 percent. The book runners involved in the issuance were Citigroup Global Markets, Inc., J.P. Morgan Securities Inc. and Wachovia Capital Markets, LLC. NiSource President and Chief Executive Officer Robert C. Skaggs Jr. noted that the $600 million debt issuance -- when combined with previously announced financing initiatives -- fully addresses the company's 2009 debt refinancing requirements, and puts the company well on its way toward meeting its 2010 refinancing needs of approximately $935 million. When NiSource announced its 2008 earnings on Feb. 4, 2009, the company indicated that it had taken steps to reduce its 2009 financing needs from slightly in excess of $1 billion to approximately $500 million. Subsequently, on Feb. 13, NiSource closed a $265 million two-year term loan which it expects to increase to $350 million in April under an accordion feature in the financing agreement. In addition, NiSource's 2009 financing needs are expected to be reduced by approximately an additional $100 million as a result of the bonus tax depreciation provisions contained in the Federal stimulus legislation enacted on Feb. 17. On March 5, Standard & Poor's affirmed NiSource Inc.'s 'BBB-' corporate credit rating and revised its outlook to stable from negative, citing NiSource's $600 million notes issuance and other recent successful efforts to ensure financial flexibility and maintain adequate liquidity. "We are appreciative of S&P's acknowledgement that, despite a challenging environment, we are continuing to make solid progress on NiSource's comprehensive strategy to maintain financial flexibility, proactively address financing and liquidity needs, and deliver on our core business commitments," Skaggs said. "We have successfully reduced our overall financing requirements, moved aggressively to meet those needs, and kept fundamental elements of our business strategy on track. I remain confident that, because of the steps we have taken and will continue to take, NiSource will maintain 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. These and other risks are outlined more fully in the Company's Form 10-K for the period ended Dec. 31, 2008. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in this report. SOURCE NiSource Inc.

Now completely re-designed providing more clarity ...

Now completely re-designed providing more clarity ...

Now completely re-designed providing more clarity ...