Summary
Dominion Resources, Inc. (the Company) filed an 8-K on November 13, 2006, to report on the execution of two underwriting agreements on November 9, 2006. These agreements were for the sale of a total of $650 million in senior notes. Specifically, the Company will issue $250 million in 5.60% Senior Notes due 2016 and $400 million in Floating Rate Senior Notes due 2008. These issuances are part of a shelf registration statement previously filed with the SEC. The filing provides details on the underwriting agreements and the supplemental indentures that will govern these new debt securities. Investors should note this is a debt financing event aimed at raising capital for the company.
Key Highlights
- 1Dominion Resources, Inc. entered into underwriting agreements to sell $250 million of 5.60% Senior Notes due 2016.
- 2The Company also agreed to sell $400 million of Floating Rate Senior Notes due 2008.
- 3The total aggregate principal amount of senior notes to be sold is $650 million.
- 4The underwriting agreements were executed on November 9, 2006, with major underwriters including Barclays Capital Inc., Citigroup Global Markets Inc., and J.P. Morgan Securities Inc.
- 5These notes were registered under a shelf registration statement previously filed with the SEC.
- 6The filing includes forms of supplemental indentures that will govern the terms of these new senior notes.
- 7Legal opinions from McGuire Woods LLP regarding the notes are also included as exhibits.
Frequently Asked Questions
This 8-K filing is to report on the execution of underwriting agreements for the sale of new senior notes by Dominion Resources, Inc. It formally announces the terms and agreements related to the issuance of $250 million in 5.60% Senior Notes due 2016 and $400 million in Floating Rate Senior Notes due 2008.
Dominion Resources is raising a total of $650 million through these two senior note offerings: $250 million from the 5.60% Senior Notes due 2016 and $400 million from the Floating Rate Senior Notes due 2008.
Yes, these senior notes were registered pursuant to a shelf registration statement on Form S-3 that became effective on February 13, 2006 (File No. 333-131810). This means the company had pre-registered the ability to issue these types of securities.
The filing details two series of senior notes: the 2006 Series A 5.60% Senior Notes due 2016, which carry a fixed interest rate of 5.60%, and the 2006 Series B Floating Rate Senior Notes due 2008, which have a variable interest rate. Specific details on the floating rate mechanism are not fully elaborated in this 8-K but are governed by the supplemental indentures.