NiSource

The NiSource/Columbia Pipeline Group are now officially divorced. Well, they call it a “separation,” but it’s really a divorce. Amicable, but permanent. Last September MDN brought you the news that NiSource, owner of Columbia Gas, would be spinning Columbia off into its own company in 2015 (see NiSource Splits in Two: Columbia Pipeline Will be Separate Company). NiSource the utility will remain focused on being a utility, and Columbia Gas will be spun off into it’s own company called Columbia Pipeline Group (CPG) under a master limited partnership (MLP) structure. As of yesterday the divorce is final and the two companies have gone their separate ways…
Read More “NiSource/Columbia Pipeline Divorce is Final”

NOTE: NiSource/Columbia called MDN to clarify that the IPO earlier this year was for Columbia Pipeline Partners, NOT Columbia Pipeline Group as we had incorrectly stated in the original version of this story. Thank you NiSource! We’ve slightly modified the opening paragraph below to make it accurate.

The mad dash to raise cash continues in both the upstream and midstream sectors. Today it’s a company in the midstream (pipelines and process plants). In February of this year, NiSource spun off Columbia Pipeline Partners into it’s own company with a $1.1 billion initial public offering of “units” (think shares of stock, see Columbia Pipeline IPO Blows By Rosiest Expectations, Nets $1.1B). Columbia Pipeline Group (of which Columbia Pipeline Partners owns 15.7%) will become its own company and trade under its own stock ticker (CPGX) starting July 1. Yesterday Columbia Pipeline Group announced they are floating a series of IOUs, or “senior notes” looking to raise an eye-popping $2.75 billion. What will they use it for? A little over $1 billion will be used to pay off “intercompany debt” ahead of the separation. Another $1.45 billion will be used for a “special dividend to NiSource in connection with its planned separation from NiSource.” The balance of ~$300 million will be used for “general corporate purposes”–paperclips and such…
Read More “Columbia Pipeline Floats IOUs to Pay Down Debt, Fund Dividend”

Last September NiSource announced they would spin off subsidiary Columbia Pipeline Group into its own company (see NiSource Splits in Two: Columbia Pipeline Will be Separate Company). It took a few months, but the two operations finally determined which executive would go with which company (see Who Gets the Kids in NiSource/Columbia Gas Divorce?). Earlier this week we finally learned the details of the initial public offering (IPO) for Columbia–how much money they plan to raise. NiSource said the IPO will float an initial 40 million “common units” (think shares of stock) with an option to add another 6 million to the pot. They hope to get between $19 and $21 per unit, meaning a total of between $760 million on the low side, to $966 million on the high side…
Read More “Columbia Pipeline Floats IPO, Hopes for Upward of $1B”

At the end of September MDN brought you the news that NiSource, owner of Columbia Gas, will be spinning Columbia off into its own company in 2015 (see NiSource Splits in Two: Columbia Pipeline Will be Separate Company). NiSource the utility will remain focused on being a utility, and Columbia Gas will be spun off into it’s own company called Columbia Pipeline Group (CPG) under a master limited partnership (MLP) structure. It’s an amicable divorce. But you know, when people get divorced, they have to split everything–including the kids. Who gets the kids? NiSource and Columbia issued an announcement today detailing which executives will stay with NiSource, and which will go with Columbia–along with a list of who will sit on which board of directors…
Read More “Who Gets the Kids in NiSource/Columbia Gas Divorce?”

NiSource is a very big public utility company (electric & gas) serving 3.8 million customers from the Gulf Coast through the Midwest to New England. Headquartered in Indiana, NiSource is also the parent of Columbia Gas, which owns extensive pipelines and recently announced they would build another two new pipelines in the Marcellus region (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). NiSource has decided and in an unusual move announced yesterday (Sunday) that they are splitting the company in two. NiSource the utility will remain focused on being a utility, and Columbia Gas will be spun off into it’s own company called Columbia Pipeline Group (CPG) under a master limited partnership (MLP) structure. MLPs issue “units” instead of shares of stock–although functionally they are about the same thing. Here’s the details from NiSource…
Read More “NiSource Splits in Two: Columbia Pipeline Will be Separate Company”