New Issue-NiSource Finance sells $700 mln in 2 parts

May 15 (Reuters) - NiSource Finance Corp, a unit of
electric utility NiSource Inc (NI.N: Quote, Profile, Research, Stock Buzz), on Thursday sold $700
million in two parts, said market sources.

The five-year notes were a $200 million add-on to its
existing 6.15 percent notes due 2013. The total amount
outstanding is now $545 million.

The 10-year notes were a $500 million new issue.

Banc of America Securities, JP Morgan and Wachovia
Securities were the joint bookrunning managers for the sale.
BORROWER: NISOURCE FINANCE CORP*
FIRST TRANCHE:
AMT $200 MLN COUPON 6.15 PCT MATURITY 3/1/2013
TYPE ADD-ON NTS ISS PRICE 100.378** FIRST PAY 9/1/2008
MOODY'S Baa3 YIELD 6.055 PCT SETTLEMENT 5/20/2008
S&P BBB-MINUS SPREAD 292 BPS PAY FREQ SEMI-ANNUAL
FITCH TRIPLE-B MORE THAN TREAS MAKE-WHOLE CALL 35 BPS
SECOND TRANCHE:
AMT $500 MLN COUPON 6.80 PCT MATURITY 1/15/2019
TYPE NOTES ISS PRICE 99.724 FIRST PAY 7/15/2008
MOODY'S Baa3 YIELD 6.834 PCT SETTLEMENT 5/20/2008
S&P BBB-MINUS SPREAD 297 BPS PAY FREQ SEMI-ANNUAL
FITCH TRIPLE-B MORE THAN TREAS MAKE-WHOLE CALL 50 BPS
* GUARANTEED BY NISOURCE INC
** PLUS ACCRUED INTEREST FROM 3/1/2008