Blackstone Infrastructure Partners acquires stake in NiSource subsidiary

Published on January 03, 2024 by Dave Kovaleski

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NiSource issued a 19.9 percent indirect equity interest in the company’s Northern Indiana Public Service Company (NIPSCO) subsidiary to an affiliate of Blackstone Infrastructure Partners.

Specifically, the Blackstone affiliate acquired a 19.9 percent non-controlling equity interest in NIPSCO Holdings II LLC, which owns all the equity interests of NIPSCO. NiSource will own the remaining 80.1 percent of NIPSCO Holdings II LLC.

“We are incredibly excited to close this transaction and to begin our long-term partnership with NiSource and NIPSCO,” Sebastien Sherman, senior managing director of Blackstone Infrastructure, said. “This investment underscores Blackstone’s commitment to decarbonization to create value for our investors and our desire to help facilitate the reindustrialization of the Midwest. We are excited to invest behind NIPSCO, one of the fastest growing utilities in the country with one of the nation’s fastest decarbonization plans. Blackstone looks forward to supporting the vital role that NIPSCO plays in communities across Northern Indiana.”

Blackstone Infrastructure invests across the utility, energy transition, transportation, digital infrastructure, water, and waste infrastructure sectors. Blackstone Infrastructure is committed to investing in NIPSCO’s energy transition and decarbonization programs, as well as helping to increase gas and electric grid resiliency for the customers of Indiana.

NiSource intends to use the capital infusion to support its fastest-growing utility and its ability to serve customers, strengthen its balance sheet, and fund capital needs related to the renewable generation transition underway.

“We are pleased to announce the completion of this transaction and are excited about the long-term partnership we have entered into with Blackstone,” NiSource President and CEO Lloyd Yates said. “The transaction strengthens our balance sheet, supports our financing plan, and provides greater flexibility to execute on high-quality capital investments that will enhance the safety, reliability, and sustainability of our gas and electric systems for the benefit of our customers. It’s important to reinforce that our commitment to Indiana remains unchanged, and we will continue to drive sustainable growth for our stakeholders. This financing transaction will have no impact on NIPSCO’s current strategic direction or on our commitment to our gas and electric customers in Indiana.”

NIPSCO is Indiana’s largest electric and gas distribution company, providing service to almost 1.3 million customers. NIPSCO is at the forefront of the energy transition and intends to retire all coal-fired generation by the end of 2028.

Lazard Freres & Co. served as lead financial advisor on the deal, while Goldman Sachs & Co. served as co-financial advisor.