RICHMOND, Va., Sept. 18,
2024 /PRNewswire/ -- Dominion Energy, Inc. (NYSE: D),
announced today that it will redeem for cash all of its outstanding
2014 Series A Enhanced Junior Subordinated Notes due 2054 (the
Notes) on Oct. 8, 2024 (the
Redemption Date), at a price of 100% of the principal amount of the
Notes, plus accrued and unpaid interest through, but not including,
the Redemption Date. The total principal amount of the Notes
outstanding is $685 million.
As previously announced, in May
2024, Dominion Energy issued $2
billion of enhanced junior subordinated notes in two series
of $1 billion each maturing in 2054
and 2055, respectively, which represented $500 million in excess of the company's 2024
hybrid financing guidance. The use of proceeds from that offering
was to finance the company's previously completed cash tender offer
for shares of its Series B preferred stock; repay short-term debt;
and opportunistically retire, redeem, or repurchase other
outstanding securities, including the Notes, which become callable
at par in October 2024. There is no
change to the company's financing guidance.
On the Redemption Date, assuming the series trustee for the
Notes has received sufficient funds to complete the redemption, the
Notes will become due and payable and interest will cease to
accrue.
For purposes of calculating the amount of accrued and unpaid
interest payable in connection with the redemption, the interest
rate for the Notes from Oct. 1, 2024,
through the Redemption Date will be determined by reference to
Three-Month CME Term SOFR plus a tenor spread adjustment of
0.26161% per annum (the Replacement Reference Rate). The
Replacement Reference Rate has replaced the Three-Month LIBOR Rate
as the reference rate for the Notes as stipulated by the Adjustable
Interest Rate (LIBOR) Act and related regulations issued by the
Board of Governors of the Federal Reserve System.
As provided in the LIBOR Act and related regulations, certain
conforming changes to the terms of the Notes have been made by
operation of law to reflect the transition from the Three-Month
LIBOR Rate to the Replacement Reference Rate.
The series trustee and paying agent for the Notes is Deutsche
Bank Trust Company Americas, c/o DB Services Americas, Inc., 5022
Gate Parkway, Suite 200, Jacksonville,
Florida, 32256.
This press release does not constitute a notice of redemption
under the indenture governing the Notes. Dominion Energy will
issue a separate notice of redemption in accordance with the terms
of the indenture governing the Notes, which may include additional
information concerning the redemption.
About Dominion Energy
More than 4.5 million
customers in 13 states energize their homes and businesses
with electricity or natural gas from Dominion Energy
(NYSE: D), headquartered in Richmond, Va. The
company is committed to providing reliable, affordable,
and increasingly clean energy every day and to
achieving Net Zero emissions by 2050. Please
visit DominionEnergy.com to learn more.
Forward-Looking Statements
This release contains
certain forward-looking statements that are subject to a variety of
factors that could cause actual events or results to differ from
those included in these statements. These factors are identified in
Dominion Energy's Forms 10-K and 10-Q filed with the U.S.
Securities and Exchange Commission. Dominion Energy refers readers
to those discusses for further information. Any forward-looking
statement speaks only as of the date on which it is made, and
Dominion Energy undertakes no obligation to update any
forward-looking statement to reflect events or circumstances
occurring after the date on which it is made.
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SOURCE Dominion Energy