Blackstone acquires 19.9% stake in NIPSCO for US$2.16 billion
[ad_1]
©Reuters. Merrillville, Ind. – NiSource Corporation (NYSE: NI), a leading regulated utility, has completed the indirect sale of a 19.9% interest in its subsidiary Northern Indiana Public Service Company LLC (NIPSCO) to an affiliate of Blackstone Infrastructure Partners. The transaction, valued at $2.16 billion, also includes an additional $250 million in equity commitments to meet NIPSCO’s ongoing capital needs.
Blackstone Infrastructure Partners, part of Blackstone Inc. (NYSE: BX), is a permanent equity investor focused on large infrastructure assets. Its investment in NIPSCO is consistent with the utility’s energy transition and decarbonization plans. NIPSCO was recognized for its rapid transition away from coal-fired power generation and has set a goal of zero net coal production by 2028.
NiSource plans to use proceeds from the transaction to strengthen its balance sheet and support capital investments related to the renewable energy transition. This is consistent with NIPSCO’s ongoing strategy to invest in renewable energy generation, replace coal-fired generation, and modernize natural gas and electricity transmission and distribution systems.
NiSource President and CEO Lloyd Yates emphasized that the partnership with Blackstone strengthens their financial foundation and allows them to continue investing in capital projects that improve safety, reliability and system sustainability. He assured that the transaction will not affect NIPSCO’s strategic direction or the company’s commitment to customers in Indiana.
Sebastien Sherman, senior managing director of infrastructure at Blackstone, expressed enthusiasm for the partnership and emphasized Blackstone’s commitment to supporting NIPSCO’s role in the country’s reindustrialization and decarbonization efforts.
NIPSCO is Indiana’s largest integrated electric and natural gas distribution company, serving nearly 1.3 million customers. The company is focused on developing a cost-effective renewable energy portfolio and plans to phase out all coal-fired power generation products by the end of 2028. These investments are part of a long-term capital plan designed to expand NIPSCO’s interest base and provide value to its customers.
The financial advisor in this transaction was Lazard Freres &; company. LLC and Goldman Sachs & Company. LLC is advising NiSource and Barclays is advising Blackstone. McGuireWoods LLP advised NiSource and Latham; Watkins LLP and Paul, Weiss, Rifkind, Wharton & Blackstone’s Garrison LLP.
The information in this article is based on press release statements.
This article was created and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.
