NiSource To Remarket Series-C Mandatory Convertible Preferred Stock

(RTTNews) - NiSource Inc. (NI), a regulated natural gas and electric utility company, announced on Friday that it intends to remarket up to 862,500 shares of its Series-C Mandatory Convertible Preferred Stock with a par value of $0.01 per share.

The shares were issued on April 19 originally, and the company will remarket these shares from October 2 till October 23.

As per the company, with a successful remarketing dividend may become payable on the Mandatory Convertible Preferred Stock and will be paid on March 1, 2024 when declared by the board. Additionally, the company may also elect December 1 as the cash dividend payment date.

NiSource will not receive any proceeds from the remarketing but a portion of the proceeds will be utilized to purchase a portfolio of U.S. Treasury securities. The proceeds will also be remitted to holders of Mandatory Convertible Preferred Stock who elected to participate in the remarketing by the remarketing agent on the remarketing settlement date.

Presently, these shares bear no dividends and can be converted only upon the occurrence of certain fundamental change events.

Accordingly, the shares would automatically convert into common shares of the company on March 1, 2024, between 34.9107 and 41.0201 shares of common stock depending on the forty-day volume weighted average price of the common stock over a period preceding March 1, 2024.

"If the closing price of NiSource common stock on the date of the pricing of the remarketing of the Mandatory Convertible Preferred Stock is $24.3783 or less, the minimum conversion rate will be increased to an amount equal to $1,000 divided by 117.5% of such closing price," the company said in a statement.

In pre-market, shares of NiSource are trading at $27.48 down by 0.94% on the New York Stock Exchange.