An affiliate of Blackstone Infrastructure Partners, L.P., a fund managed by Blackstone Inc. (NYSE:BX), entered into a definitive agreement to acquire a 19.9% equity interest in Northern Indiana Public Service Company, LLC from NiSource Inc. (NYSE:NI) for $2.2 billion.
June 19, 2023
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An affiliate of Blackstone Infrastructure Partners, L.P., a fund managed by Blackstone Inc. (NYSE:BX), entered into a definitive agreement to acquire a 19.9% equity interest in Northern Indiana Public Service Company, LLC ("NIPSCO") from NiSource Inc. (NYSE:NI) for $2.2 billion on June 17, 2023. The purchase price of $2.15 billion in cash, subject to adjustment based on the timing of closing and the amount of capital contributions made prior to closing. 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. As part of the transaction, 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. Blackstone will be required to pay a termination fee of $100 million in case of termination of the transaction.
The transaction is subject to customary closing conditions, including receiving Federal Energy Regulatory Commission approvals and clearances. As of October 19, 2023, Federal Energy Regulatory Commission granted approval of the transaction. The transaction is expected to close by year-end 2023. NiSource will use the proceeds for funding NIPSCO capital needs, providing increased surety in NIPSCO?s ability to finance its energy transition strategy and Strengthening NiSource?s balance sheet and other corporate uses in line with NiSource?s capital allocation objectives.
Lazard Frères & Co. LLC is serving as lead financial advisor, Goldman Sachs & Co. LLC is serving as co-financial advisor and Joanne Katsantonis and Emilie McNally of McGuireWoods LLP are serving as legal counsel to NiSource. Barclays is serving as financial advisor and Ravi Purohit, David Allinson, Katharine Moir, Stephanie Teicher, Nathan Whitaker, Benjamin Rosemergy, Sandra Benjamin, Tyler Brown, Kieran Dickinson, David Langer, Robert Frances, Aaron Friberg, Farrell Malone, Britton Davis, Kristin Murphy and Drew Levin of Latham & Watkins LLP are serving as legal counsel to Blackstone. Sumitomo Mitsui Banking Corporation provided committed financing for the transaction. Marcus Dougherty and Benjamin Sayagh, James Liles, Jane Hanson, Joel Krasnow, Matthew Ahrens, Thomas Goslin and Andrew Fadale of Milbank LLP Advises Sumitomo Mitsui Banking Corporation in Financing for Blackstone?s Acquisition of Minority Equity Interest in NIPSCO.
Blackstone Inc. is an investment firm. The Company's asset management business includes investment vehicles, which is focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, and secondary funds. The Company operates through four segments: Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions. Its Blackstone Real Estate Partners (BREP) business makes investments in logistics, office, rental housing, hospitality, and retail properties, as well as in a variety of real estate operating companies. The Private Equity segment includes Blackstone Capital Partners, Blackstone Energy Transition Partners, Blackstone Capital Partners Asia, and Blackstone Core Equity Partners. The Credit & Insurance segment includes Blackstone Credit and Blackstone Insurance Solutions (BIS). The Hedge Fund Solutions segment includes Blackstone Alternative Asset Management and GP Stakes businesses.
An affiliate of Blackstone Infrastructure Partners, L.P., a fund managed by Blackstone Inc. (NYSE: BX), entered into a definitive agreement to acquire a 19.9% equity interest in Northern Indiana Public Service Company, LLC from NiSource Inc. (NYSE
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