Northern Indiana Public Service Company - Page 5

                                                - 5 -                                                 
            proceeds were to be added to petitioner's working capital for                             
            ultimate application to the cost of its construction project,                             
            including the payment of short-term borrowings made to provide                            
            funds for the construction project.  Petitioner also stated the                           
            following in its petition to the Public Service Commission of                             
            Indiana:                                                                                  

                  It is believed that the Notes issued in conjunction                                 
                  with the Finance Subsidiary's issue and sale of the                                 
                  Euronotes, could be issued at a relatively favorable                                
                  interest rate compared to domestically issued,                                      
                  unsecured long-term debt of petitioner and would allow                              
                  petitioner additional flexibility in funding its                                    
                  construction program.                                                               

                  On September 25, 1981, the Public Service Commission of                             
            Indiana issued a certificate of authority providing that                                  
            petitioner was authorized to borrow the proceeds of the Euronote                          
            issue and, in return, was authorized to issue its note in an                              
            amount not to exceed $75 million to Finance, at an interest rate                          
            which would be 1 percent greater than that borne by the                                   
            Euronotes.  The certificate of authority also provided that                               
            petitioner could unconditionally guarantee the amount of                                  
            principal, interest, and premium, if any, on the Euronotes in the                         
            event of a default by Finance and that the guaranty would be a                            
            direct unsecured obligation of petitioner and would rank equally                          
            and ratably with all other unsecured senior debt of petitioner.                           
                  On October 6, 1981, Finance was authorized by its managing                          
            director to issue and sell $70 million of guaranteed notes that                           




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011