CPG begins offering of common stock

Columbia Pipeline Group Inc. (NYSE: CPGX) (CPG) has begun an underwritten public offering of 51 million shares of its common stock. In connection with this offering, CPG intends to grant the underwriters a 30-day option to purchase up to 7.65 million additional shares of its common stock.

CPG plans to use the net proceeds from this offering, together with cash flow from operations and available borrowings under its revolving credit facilities, to fully fund, directly or indirectly, the 2016 capital expenditure requirements of itself and its subsidiaries, which may include making investments in, or other funding arrangements with, Columbia Pipeline Partners LP.

Pending such use, the net proceeds from this offering will be used to repay in full amounts outstanding under CPG's revolving credit facility and outstanding amounts under CPG's commercial paper program with the remainder to be held as cash or invested in short term securities, or a combination of both.

Goldman, Sachs & Co. and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for this offering. 

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