CPG completes US$2.75 billion private placement of senior notes

Columbia Pipeline Group, Inc., a wholly owned subsidiary of NiSource Inc. has announced the closing of its previously announced offering of US$2.75 billion in aggregate principal amount of 2.45% senior unsecured notes due 2018, 3.30% senior unsecured notes due 2020, 4.50% senior unsecured notes due 2025 and 5.80% senior unsecured notes due 2045 in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the "Securities Act"), to eligible purchasers.

The notes mature on 1 June of the years 2018, 2020, 2025 and 2045, respectively, and will initially be fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company's subsidiaries.

The Company intends to use the net proceeds of approximately US$2.721 billion from the private placement to pay off US$1.0252 billion of intercompany debt between the Company and NiSource and to fund a US$1.45 billion special dividend to NiSource in connection with its planned separation from NiSource. The Company intends to use the remaining net proceeds for general corporate purposes.

The notes were sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act. The notes and the related guarantees are not registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/26052015/cpg-completes-us275-billion-private-placement-of-senior-notes/