NiSource: Blackstone Infrastructure Affiliate To Acquire 19.9% Equity Interest In NIPSCO

(RTTNews) - NiSource Inc. (NI) has entered into a definitive agreement with an affiliate of Blackstone Infrastructure Partners, Blackstone's (BX) dedicated Infrastructure group, for the Blackstone Infrastructure affiliate to acquire a 19.9% equity interest in NIPSCO for $2.15 billion. The company noted that the deal implies an equity value of $10.8 billion and enterprise value of $14.3 billion for 100% of NIPSCO.

Upon closing of the transaction, NiSource will retain an 80.1% stake in NIPSCO. NiSource will continue to operate NIPSCO; Blackstone will receive minority rights that are commensurate with its 19.9% equity ownership interest. Blackstone is committed to funding its pro rata share of ongoing capital requirements, which is supported by a $250 million equity commitment letter and contractual obligations.

NIPSCO is Indiana's largest vertically integrated electric and gas distribution company, providing critical utility service to almost 1.3 million customers.

NiSource also reaffirmed its non-GAAP NOEPS guidance of $1.54 to $1.60 in 2023, growth of 6-8% through 2027 and its FFO/debt target of 14-16%.