NISOURCE INC.NI
NISOURCE INC. Debt Disclosure
Our long-term debt as of December 31, 2023 and 2022 is as follows:
| Long-term debt type | Maturity as of December 31, 2023 | Weighted average interest rate (%) | Outstanding balance as of December 31, (in millions) | |||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||
| Senior notes: | ||||||||||||||||||||
| NiSource | August 2025 | 0.95 | % | $ | 1,250.0 | $ | 1,250.0 | |||||||||||||
| NiSource | May 2027 | 3.49 | % | 1,000.0 | 1,000.0 | |||||||||||||||
| NiSource | December 2027 | 6.78 | % | 3.0 | 3.0 | |||||||||||||||
NiSource | March 2028 | 5.25 | % | 1,050.0 | — | |||||||||||||||
| NiSource | September 2029 | 2.95 | % | 750.0 | 750.0 | |||||||||||||||
| NiSource | May 2030 | 3.60 | % | 1,000.0 | 1,000.0 | |||||||||||||||
| NiSource | February 2031 | 1.70 | % | 750.0 | 750.0 | |||||||||||||||
NiSource | June 2033 | 5.40 | % | 450.0 | — | |||||||||||||||
| NiSource | December 2040 | 6.25 | % | 152.6 | 152.6 | |||||||||||||||
| NiSource | June 2041 | 5.95 | % | 347.4 | 347.4 | |||||||||||||||
| NiSource | February 2042 | 5.80 | % | 250.0 | 250.0 | |||||||||||||||
| NiSource | February 2043 | 5.25 | % | 500.0 | 500.0 | |||||||||||||||
| NiSource | February 2044 | 4.80 | % | 750.0 | 750.0 | |||||||||||||||
| NiSource | February 2045 | 5.65 | % | 500.0 | 500.0 | |||||||||||||||
| NiSource | May 2047 | 4.38 | % | 1,000.0 | 1,000.0 | |||||||||||||||
| NiSource | March 2048 | 3.95 | % | 750.0 | 750.0 | |||||||||||||||
| NiSource | June 2052 | 5.00 | % | 350.0 | 350.0 | |||||||||||||||
| Total senior notes | $ | 10,853.0 | $ | 9,353.0 | ||||||||||||||||
| Medium term notes: | ||||||||||||||||||||
| NiSource | May 2027 | 7.99 | % | $ | 29.0 | $ | 29.0 | |||||||||||||
| NIPSCO | June 2027 to August 2027 | 7.64 | % | 58.0 | 58.0 | |||||||||||||||
| Columbia of Massachusetts | December 2025 to February 2028 | 6.37 | % | 15.0 | 15.0 | |||||||||||||||
| Total medium term notes | $ | 102.0 | $ | 102.0 | ||||||||||||||||
| Finance leases: | ||||||||||||||||||||
| NiSource Corporate Services | February 2024 to September 2027 | 2.89 | % | $ | 30.5 | $ | 48.6 | |||||||||||||
| NIPSCO | December 2027 to November 2035 | 4.77 | % | 61.2 | 16.5 | |||||||||||||||
| Columbia of Ohio | December 2025 to March 2044 | 6.16 | % | 90.3 | 83.5 | |||||||||||||||
| Columbia of Virginia | July 2029 to November 2039 | 6.23 | % | 16.1 | 17.0 | |||||||||||||||
| Columbia of Kentucky | May 2027 | 3.79 | % | 0.2 | 0.2 | |||||||||||||||
| Columbia of Pennsylvania | July 2027 to May 2035 | 4.49 | % | 7.1 | 8.9 | |||||||||||||||
| Total finance leases | $ | 205.4 | $ | 174.7 | ||||||||||||||||
| Unamortized issuance costs and discounts | $ | (81.1) | $ | (76.1) | ||||||||||||||||
| Total Long-Term Debt | $ | 11,079.3 | $ | 9,553.6 | ||||||||||||||||
Details of our 2023 long-term debt related activity are summarized below:
•On March 24, 2023, we completed the issuance sale of $750.0 million of 5.25% senior unsecured notes maturing in 2028, which resulted in approximately $742.2 million of net proceeds after discount and debt issuance costs.
•On June 8, 2023, we completed the issuance and sale of $300.0 million of 5.25% senior unsecured notes maturing in 2028 (the "2028 Notes"). The terms of the 2028 Notes, other than the issue date and the price to the public, are identical to the terms of, and constitute as a reopening of, our 5.25% senior unsecured notes due 2028 issued on March 24, 2023. With the incremental issuance, we now have $1.05 billion of 5.25% senior unsecured notes maturing in 2028. On June 8, 2023, we also completed the issuance and sale of $450.0 million of 5.40% senior unsecured notes maturing in 2033. These issuances resulted in approximately $742.5 million of total net proceeds after discount and debt issuance costs.
Details of our 2022 long-term debt related activity are summarized below:
•On April, 2022, we repaid $20.0 million of 7.99% medium term notes at maturity.
•On June 10, 2022, we completed the issuance and sale of $350.0 million of 5.00% senior unsecured notes maturing in 2052, which resulted in approximately $344.6 million of net proceeds after discount and debt issuance costs.
•On August 30, 2022, NIPSCO repaid $10.0 million of 7.40% medium term notes at maturity.
See Note 19, "Other Commitments and Contingencies - A. Contractual Obligations," for the outstanding long-term debt maturities at December 31, 2023.
Unamortized debt expense, premium and discount on long-term debt applicable to outstanding bonds are being amortized over the life of such bonds.
We are subject to a financial covenant under our revolving credit facility which requires us to maintain a debt to capitalization ratio that does not exceed 70%. As of December 31, 2023, the ratio was 58.2%.
We are also subject to certain other non-financial covenants under the revolving credit facility. Such covenants include a limitation on the creation or existence of new liens on our assets, generally exempting liens on utility assets, purchase money security interests, preexisting security interests and an additional subset of assets equal to $200 million. An asset sale covenant generally restricts the sale, conveyance, lease, transfer or other disposition of our assets to those dispositions that are for a price not materially less than fair market of such assets, that would not materially impair our ability to perform obligations under the revolving credit facility, and that together with all other such dispositions, would not have a material adverse effect. The covenant also restricts dispositions to no more than 15% of our consolidated total assets on December 31, 2022. Additionally, the revolving credit facility requires us to own directly or indirectly at least 70% of NIPSCO. The revolving credit facility also includes a cross-default provision, which triggers an event of default under the credit facility in the event of an uncured payment default relating to any indebtedness of us or any of our subsidiaries in a principal amount of $75.0 million or more.
Our indentures generally do not contain any financial maintenance covenants. However, our indentures are generally subject to cross-default provisions ranging from uncured payment defaults of $5 million to $50 million, and limitations on the incurrence of liens on our assets, generally exempting liens on utility assets, purchase money security interests, preexisting security interests and an additional subset of assets capped at 10% of our consolidated net tangible assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 21, 2024 | Showing above |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 18, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.