Long-Term Debt

12 Months Ended

Dec. 31, 2021

Long-term Debt, Current and Noncurrent [Abstract]

Our long-term debt as of December 31, 2021 and 2020 is as follows:


Long-term debt type	Maturity as of December 31, 2021	Weighted average interest rate (%)		Outstanding balance as of December 31, (in millions)
				2021		2020
Senior notes:
NiSource	August 2025	0.95	%	1,250.0		1,250.0
NiSource	May 2027	3.49	%	1,000.0		1,000.0
NiSource	December 2027	6.78	%	3.0		3.0
NiSource	September 2029	2.95	%	750.0		750.0
NiSource	May 2030	3.60	%	1,000.0		1,000.0
NiSource	February 2031	1.70	%	750.0		750.0
NiSource	December 2040	6.25	%	152.6		152.6
NiSource	June 2041	5.95	%	347.4		347.4
NiSource	February 2042	5.80	%	250.0		250.0
NiSource	February 2043	5.25	%	500.0		500.0
NiSource	February 2044	4.80	%	750.0		750.0
NiSource	February 2045	5.65	%	500.0		500.0
NiSource	May 2047	4.38	%	1,000.0		1,000.0
NiSource	March 2048	3.95	%	750.0		750.0
Total senior notes				$	9,003.0	$	9,003.0
Medium term notes:
NiSource	April 2022 to May 2027	7.99	%	$	49.0	$	49.0
NIPSCO	August 2022 to August 2027	7.61	%	68.0		68.0
Columbia of Massachusetts	December 2025 to February 2028	6.37	%	15.0		15.0
Total medium term notes				$	132.0	$	132.0
Finance leases:
NiSource Corporate Services	March 2022 to December 2025	1.73	%	51.4		49.4
NIPSCO	December 2027 to January 2033	1.86	%	18.7		16.0
Columbia of Ohio	December 2025 to March 2044	6.15	%	87.8		91.2
Columbia of Virginia	July 2029 to November 2039	6.28	%	17.7		18.4
Columbia of Kentucky	May 2027	3.79	%	0.2		0.3
Columbia of Pennsylvania	August 2027 to May 2035	6.35	%	9.8		19.7
Total finance leases				185.6		195.0
Unamortized issuance costs and discounts				$	(79.1)	$	(86.9)
Total Long-Term Debt				$	9,241.5	$	9,243.1

There was no long-term debt activity during 2021. Details of our 2020 long-term debt related activity are summarized below:

•On April 13, 2020, we completed the issuance and sale of $1.0 billion of 3.60% senior unsecured notes maturing in 2030, which resulted in approximately $987.8 million of net proceeds after deducting commissions and expenses.

•On August 18, 2020, we completed the issuance and sale of $1.25 billion of 0.95% senior unsecured notes maturing in 2025 and $750.0 million of 1.70% senior unsecured notes maturing in 2031, which resulted in approximately $1,980.4 million of net proceeds after deducting commissions and expenses.

•In August 2020, we executed tender offers for $969.3 million of outstanding notes consisting of a combination of our 4.45% notes due 2021, 2.65% notes due 2022, 3.85% notes due 2023, 3.65% notes due 2023, 6.25% notes due 2040, and 5.95% notes due 2041. In August and September 2020, we redeemed $609.3 million of outstanding notes representing the remainder of our 4.45% notes due 2021, 2.65% notes due 2022, 3.85% notes due 2023, and 3.65% notes due 2023 and all of our 5.89% notes due 2025. In conjunction with the debt retired, we recorded a $231.8 million loss on early extinguishment of long-term debt, primarily attributable to early redemption premiums.

•In September 2020, Columbia of Massachusetts redeemed $25.0 million of its outstanding 6.26% notes due 2028. In conjunction with the debt retired, Columbia of Massachusetts recorded an $11.7 million loss on early extinguishment of long-term debt, primarily attributable to early redemption premiums. Under the terms of the Asset Purchase Agreement, Columbia of Massachusetts’ net working capital at the closing of the sale of the Massachusetts Business was increased by 50% of the debt extinguishment costs, which was approximately $5.3 million.

See Note 19-A, "Contractual Obligations," for the outstanding long-term debt maturities at December 31, 2021.

Unamortized debt expense, premium and discount on long-term debt applicable to outstanding bonds are being amortized over the life of such bonds.

We are subject to a financial covenant under our revolving credit facility which requires us to maintain a debt to capitalization ratio that does not exceed 70%. As of December 31, 2021, the ratio was 57.4%.

We are also subject to certain other non-financial covenants under the revolving credit facility. Such covenants include a limitation on the creation or existence of new liens on our assets, generally exempting liens on utility assets, purchase money security interests, preexisting security interests and an additional subset of assets equal to $200 million. An asset sale covenant generally restricts the sale, conveyance, lease, transfer or other disposition of our assets to those dispositions that are for a price not materially less than fair market of such assets, that would not materially impair our ability to perform obligations under the revolving credit facility, and that together with all other such dispositions, would not have a material adverse effect. The covenant also restricts dispositions to no more than 15% of our consolidated total assets on December 31, 2020. The revolving credit facility also includes a cross-default provision, which triggers an event of default under the credit facility in the event of an uncured payment default relating to any indebtedness of us or any of our subsidiaries in a principal amount of $75.0 million or more.

Our indentures generally do not contain any financial maintenance covenants. However, our indentures are generally subject to cross-default provisions ranging from uncured payment defaults of $5 million to $50 million, and limitations on the incurrence of liens on our assets, generally exempting liens on utility assets, purchase money security interests, preexisting security interests and an additional subset of assets capped at 10% of our consolidated net tangible assets.