EXHIBIT 99.1
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------- NISOURCE [LOGO]
N E W S 801 E. 86th Avenue
------- Merrillville, IN 46410
FOR IMMEDIATE RELEASE
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November 3, 2002
FOR ADDITIONAL INFORMATION
MEDIA INVESTORS
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Kris Falzone Dennis Senchak
Director, Corporate Affairs Vice President, Investor Relations
(219) 647-5581 (219) 647-6085
Bill O'Malley
Director, Investor Relations
(219) 647-5688
Rae Kozlowski
Manager, Investor Relations
(219) 647-6083
NISOURCE ANNOUNCES EQUITY OFFERING AND 2003 EARNINGS OUTLOOK
MERRILLVILLE, Ind. -- NiSource Inc. (NYSE:NI) today announced that it
is offering 30 million shares of new common stock in an underwritten
offering commencing tomorrow that would amount to approximately $500
million in gross proceeds.
The net proceeds from the offering will be used for the repayment of
debt.
NiSource also today announced that it expects 2003 net income to
increase by 5 percent, generating earnings in the range of $1.65 to
$1.75 per share. NiSource's earnings per share guidance reflects an
increase in the company's number of shares outstanding, including the
shares to be issued in the offering, as well as the anticipated
conversion of its Premium Income Equity Securities (PIES) into
approximately 13.1 million shares of common stock in February 2003.
The guidance also takes into account the impact of the Indiana Utility
Regulatory Commission (IURC) electric rate review settlement and
higher expected pension and insurance expenses. NiSource's earnings
outlook assumes normal weather.
"In 2003, we will continue to focus on what we do best: optimizing
revenue opportunities and managing expenses in our regulated, asset-
based businesses," stated Gary L. Neale, NiSource chairman, president
and chief executive officer. "As a result of these factors, 2003 will
produce a stronger balance sheet, solid earnings and stable dividend.
NiSource will continue to deliver an attractive return to our
shareholders."
-more-
NISOURCE ANNOUNCES EQUITY OFFERING AND 2003 EARNINGS OUTLOOK
PAGE 2
In connection with the offering, the company will grant the
underwriters an option for a period of 30 days to purchase up to an
additional 4.5 million shares of the company's common stock to cover
over-allotments.
The offering will be made under the company's existing effective shelf
registration statement and is expected to price during the coming
week.
The joint book-running managers for the offering are Banc of America
Securities and Credit Suisse First Boston. The offering is made only
through a prospectus, a copy of which may be obtained from the
underwriters and is available on the Internet at www.sec.gov.
NiSource Inc. is a Fortune 500 holding company with headquarters in
Merrillville, Ind., whose core operating companies engage in natural
gas transmission, storage and distribution, as well as electric
generation, transmission and distribution. NiSource operating companies
deliver energy to 3.7 million customers located within the high-demand
energy corridor stretching from the Gulf Coast through the Midwest to
New England. Information about NiSource and its subsidiaries, including
a copy of the roadshow presentation being used to market the equity
offering, is available via the Internet at www.nisource.com.
The press release contains forward-looking statements within the
meaning of the federal securities laws. These forward-looking
statements are subject to various risks and uncertainties. The factors
that could cause actual results to differ materially from the
projections, forecasts, estimates and expectations discussed herein
include, among others things, increased competition in deregulated
energy markets, weather, fluctuations in supply and demand for energy
commodities, successful consummation of dispositions, growth
opportunities for NiSource's regulated and non-regulated businesses,
dealings with third parties over whom NiSource has no control, actual
operating experience of acquired assets, NiSource's ability to
integrate acquired operations into its operations, the regulatory
process, regulatory and legislative changes, changes in general
economic, capital and commodity market conditions, and counter-party
credit risk, many of which are beyond the control of NiSource. These
and other risk factors are detailed from time to time in the company's
SEC reports. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release. The company does not undertake any obligation to
publicly release any revision to these forward-looking statements to
reflect events or circumstances after the date of this press release.
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