Pricing Supplement No. 004 Filing under Rule 424(b)(2)
Dated March 26, 1997 Registration No. 333-22347
(To Prospectus dated March 18, 1997, supplemented by Prospectus
Supplement dated March 21, 1997)
$300,000,000
NIPSCO CAPITAL MARKETS, INC.
Medium-Term Notes
Due Nine Months or More From Date of Issue
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Entitled to the benefit of a Support Agreement
Providing for the Payment of Principal and Interest by
NIPSCO Industries, Inc.
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Principal Amount: $2,000,000 Interest Payment Date(s): March 15, and
Trade Date: March 25, 1997 September 15
Original Issue Date: March 31, 1997 Specified Currency: U.S. Dollars
Interest Rate: 7.82% Selling Agent s Commission: $15,000
Stated Maturity Date: April 03, 2017 Net Proceeds to the Company: $1,985,000
Form : XX Book Entry ___ Certified
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The Medium-Term Note described in this pricing supplement is being
sold through Merrill Lynch & Co. as Agent.
Prior to the date of this Pricing Supplement, $34,000,000 Medium-Term
Notes have been sold. Concurrently herewith, the company is also
selling (1) $10,000,000 aggregate principal amount of Medium-Term
Notes with a Stated Maturity Date of April 3, 2017 and bearing an
interest rate of 7.82% at the initial price to the public equal to
100% of par, less a fee to Goldman, Sachs & Co., as Agent, equal to
0.75%; (2) $50,000,000 aggregate principal amount of Medium-Term Notes
with a Stated Maturity Date of April 1, 2004 and bearing an interest
rate of 7.39% at the initial price to the public equal to 100% of par,
less a fee to Goldman, Sachs & Co., as Agent, equal to 0.6%; (3)
$2,000,000 aggregate principal amount of Medium-Term Notes with a
Stated Maturity Date of April 2, 2007 and bearing an interest rate of
7.45% at the initial price to the public equal to 100% of par, less a
fee to Goldman, Sachs & Co., as Agent, equal to 0.625%; (4) $6,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 1, 2022 and bearing an interest rate of 7.99% at the
initial price to the public equal to 100% of par, less a fee to
Goldman, Sachs & Co., as Agent, equal to 0.75%; (5) $8,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 1, 2022 and bearing an interest rate of 7.99% at the
initial price to the public equal to 100% of par, less a fee to
Merrill Lynch & Co., as Agent, equal to 0.75%; (6) $6,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 1, 2022 and bearing an interest rate of 7.99% at the
initial price to the public equal to 100% of par, less a fee to Morgan
Stanley & Co. Incorporated, as Agent, equal to 0.75%; and (7)
$10,000,000 aggregate principal amount of Medium-Term Notes with a
Stated Maturity Date of April 3, 2017 and bearing an interest rate of
7.92% at the initial offering price to the public equal to 100% of par
less a fee to Goldman, Sachs & Co., as Agent, equal to 0.75%.
GOLDMAN, SACHS & CO. MERRILL LYNCH & CO. MORGAN STANLEY & CO.
Incorporated
