Summary
Dominion Resources, Inc. (D) announced on May 17, 2005, the execution of a new $2.5 billion Five-Year Revolving Credit Agreement, effective May 12, 2005. This facility, which replaces existing credit lines, extends the maturity date to May 12, 2010, and increases the total available borrowing capacity by $250 million compared to the aggregate of the prior agreements. This strategic move enhances the company's financial flexibility and extends its access to liquidity for general corporate purposes. The agreement involves a syndicate of lenders led by JPMorgan Chase Bank, N.A., as Administrative Agent, and includes significant financial institutions. Key changes in the new credit agreement include an increased maximum debt-to-capital ratio for subsidiaries Virginia Electric and Power Company and Consolidated Natural Gas Company to 65%, offering greater financial maneuverability. The previous credit agreements, with no outstanding loans, were terminated upon the closing of this new facility, with existing letters of credit being transferred.
Key Highlights
- 1Dominion Resources entered into a new $2.5 billion Five-Year Revolving Credit Agreement on May 12, 2005.
- 2The new credit facility extends the maturity date to May 12, 2010.
- 3The total borrowing availability has increased by $250 million compared to the previous facilities.
- 4The agreement replaces Dominion's prior $1.5 billion and $750 million credit facilities.
- 5The maximum allowed debt to capital ratio for Virginia Electric and Power Company and Consolidated Natural Gas Company was increased to 65%.
- 6The new credit facility provides enhanced financial flexibility and liquidity for the company.
- 7The previous credit agreements were terminated, and existing letters of credit were transferred to the new facility.