SUPPLEMENTAL DESCRIPTION OF THE NOTES
The following description summarizes certain terms applicable to the Notes and is not intended to be a complete recitation of all terms
applicable to the Notes. Please read the following information concerning the Notes in conjunction with the statements under Description of the Debt Securities in the accompanying prospectus, which the following information supplements
and, if there are any inconsistencies, supersedes. The Notes will be issued under the Indenture, dated as of November 14, 2000, as amended and supplemented by the Second Supplemental Indenture, dated as of November 30, 2017 (collectively,
the Indenture), each between NiSource, Inc. and The Bank of New York Mellon, as successor trustee (the Trustee). The Indenture is described in the accompanying prospectus and is filed as an exhibit to the registration
statement under which the Notes are being offered and sold. Unless the context requires otherwise, references in this Supplemental Description of the Notes to NiSource, we, us or our refer solely to
NiSource Inc. and not to any of its subsidiaries.
Maturity, Interest and Payment
The Notes will mature on
, 20 , subject to earlier redemption at our option as described under
Optional Redemption. The Notes will bear interest at a rate of % per annum from and including
, 2020, payable semi-annually in arrears on
and of each year, beginning
, 2020. Interest payable on each interest payment date for the Notes will be paid to the persons in whose name the Notes are
registered at the close of business on the record date for the applicable interest payment date, which will be (i) the business day immediately preceding such interest payment date so long as all of the Notes remain in book-entry only form or
(ii) each and
(whether or not a business day) if any of the Notes do not remain in book-entry only form.
If an interest payment date falls on a day that is not a business day, interest will be payable on the next succeeding business day with the
same force and effect as if made on such interest payment date. Interest on the Notes will be calculated on the basis of a 360-day year, consisting of twelve 30-day months.
Optional Redemption
At any time before
, 20 (which is the date that is
months prior to maturity of the Notes (the Par Call Date)), we will have the right to redeem the Notes, in whole or in part and from time to time, at a redemption price equal to the
greater of (1) 100% of the principal amount of the Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed that would be due if the Notes matured
on the Par Call Date (exclusive of interest accrued to the redemption date), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus
basis points, plus, in either case, accrued and unpaid interest on the principal amount of the Notes being redeemed to, but excluding, such redemption date.
At any time on or after the Par Call Date, we will have the right to redeem the Notes, in whole or in part and from time to time, at a
redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest on the principal amount of the Notes being redeemed to, but excluding, such redemption date.
For purposes of the optional redemption provisions, the following terms have the following meanings:
Comparable Treasury Issue means the United States Treasury security selected by the Quotation Agent as having an actual or
interpolated maturity comparable to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the Notes matured on the Par Call Date), that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of the Notes.
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