NiSource plans to renew $1.25 billion in credit lines in an effort to lock in relatively cheap rates. The Merryville, Ind., holding company's refinancing consists of a $500 million 364-day facility maturing next month and a $750 million revolver expiring in two years.
Barclays and Credit Suisse First Boston are pitching a five-year loan with a facility fee of 15 basis points and a first drawn fee of LIBOR plus 5/8%. The rate jumps to LIBOR plus 70 basis points if Nisource draws over 50%, explained a banker.
The fees for the BBB credit have been stepped back from fully drawn pricing of 97.5 basis points and a commitment fee of 25 basis points. Barclays and CSFB plan on wrapping the revolver by March 11. Officials at Barclays declined to comment and calls to Steve Cheng, managing director of the energy finance group at CSFB, were not returned.
A spokeswoman said the facilities are used for general operating purposes and have not been allotted to a particular project. NiSource works with a 21-bank syndicate and outside lenders are not involved. "We have been turning banks away," she said. The loan was launched Feb. 11.