Summary
Dominion Resources, Inc. (now Dominion Energy, Inc.) filed an 8-K on January 13, 2006, to report a significant financing event. The company, along with its subsidiary Consolidated Natural Gas Company, entered into a new $1.9 billion Credit Agreement on January 11, 2006. This new facility replaces four existing bilateral credit lines totaling the same amount. The primary benefit for investors from this new agreement is the extension of the maturity date to December 31, 2006. Importantly, no funds were drawn under the previous agreements, which were terminated upon the closing of this new credit facility. This action indicates proactive financial management to ensure adequate liquidity and a simplified credit structure.
Key Highlights
- 1New $1.9 billion Credit Agreement entered into on January 11, 2006.
- 2The agreement is with Wachovia Bank, N.A. as Administrative Agent, and includes other major financial institutions.
- 3This new facility replaces four prior bilateral credit facilities, also totaling $1.9 billion.
- 4A key change is the extension of the maturity date to December 31, 2006.
- 5No outstanding loans were present under the previous credit agreements.
- 6The previous agreements were terminated following the closing of the new credit facility.
- 7The credit agreement is filed as an exhibit (Exhibit 10.1).