NiSource Inc. Issues $750M 6.250% Fixed-to-Fixed Reset Notes Due 2057

What Happened
NiSource Inc. announced in an 8-K filed Aug 18, 2026 that it sold $750,000,000 aggregate principal amount of 6.250% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2057. A Terms Agreement with lead underwriters was entered Aug 13, 2026 and the sale closed Aug 18, 2026. Interest accrues from Aug 18, 2026 and is payable semi‑annually on April 15 and October 15, beginning April 15, 2027.

Key Details

• Principal: $750,000,000 of junior subordinated notes issued under the Company’s Form S-3 registration.
• Coupon and reset: 6.250% per annum from Aug 18, 2026 until the first reset date (Apr 15, 2032); thereafter resets each period at the Five‑year U.S. Treasury Rate + 1.930%, with a floor of 6.250%.
• Maturity: April 15, 2057.
• Interest deferral: Company may defer interest payments (if no event of default exists) for up to 20 consecutive semi‑annual periods; during deferral the Company is restricted from paying dividends, repurchasing capital stock, or making certain payments on pari‑ or subordinated obligations, among other limitations.
• Documents: Notes issued under the May 16, 2024 Subordinated Indenture, supplemented by a Fourth Supplemental Indenture dated Aug 18, 2026; legal and tax opinions from McGuireWoods were filed with the 8-K.
• Use of proceeds: for general corporate purposes, including capital expenditures, working capital and repayment of existing indebtedness.

Why It Matters
This is a debt issuance that increases NiSource’s long‑term funded debt by $750M and provides cash for corporate needs and debt repayment. The notes are junior subordinated and include an interest‑deferral feature and restrictions during any deferral period, which can affect cash available for dividends and other subordinated obligations. Investors should note the long maturity (2057), the initial fixed coupon through 2032 and the reset mechanics thereafter (Treasury + spread with a 6.25% floor).