Summary
Dominion Energy, Inc. (D) has announced a significant adjustment to the interest rate on its 2000 Series G 8.05% Senior Notes due November 15, 2006. Effective November 16, 2004, the reset rate, determined by Lehman Brothers Inc., will lower the coupon from 8.05% to 3.66%. This change applies to the total outstanding principal amount of $412,500,000 and is a result of a Remarketing Agreement from October 12, 2000. This rate reset is a crucial development for investors holding these specific senior notes. The substantial reduction in the interest rate will directly impact the income generated by these notes. Investors should carefully consider the implications of this lower yield on their overall portfolio returns and Dominion's future interest expense. While the filing doesn't elaborate on the reasons for the reset, it is a standard mechanism in certain debt agreements that can be triggered by market conditions or other pre-defined terms.
Key Highlights
- 1Dominion Energy (D) announced a reset interest rate for its 2000 Series G 8.05% Senior Notes due November 15, 2006.
- 2The Reset Rate, determined by Lehman Brothers Inc., will lower the coupon from 8.05% to 3.66% starting November 16, 2004.
- 3The affected notes have a total principal amount outstanding of $412,500,000.
- 4This rate adjustment is part of a Remarketing Agreement dated October 12, 2000.
- 5The filing incorporates by reference Exhibit 12.1, Statement re Computation of Ratios, from a Form S-4 Registration Statement.