Summary
Dominion Resources, Inc. (now Dominion Energy, Inc.) filed an 8-K report on July 1, 2014, disclosing the issuance of 20,000,000 equity units, referred to as '2014 Series A Corporate Units.' This offering, structured as a purchase contract for common stock combined with a subordinated note, aims to raise capital with a deadline of July 1, 2017, for the stock purchase obligation. The notes carry a 1.50% interest rate and are due in 2020, with the units providing quarterly contract adjustment payments at a 4.875% annual rate on their $50 stated amount.
Key Highlights
- 1Dominion Resources announced the issuance of 20,000,000 equity units (2014 Series A Corporate Units).
- 2Each Corporate Unit consists of a purchase contract for Dominion's common stock and a beneficial ownership interest in 1.50% Remarketable Subordinated Notes due 2020.
- 3The purchase contract obligates holders to buy shares of common stock by July 1, 2017, for $50 cash per unit.
- 4The 2014 Series A Corporate Units offer quarterly contract adjustment payments at an annual rate of 4.875% on the $50 stated amount.
- 5The underwriters exercised their full overallotment option for an additional 2,000,000 units, bringing the total issuance to 20,000,000 units.
- 6The subordinated notes are pledged as collateral to secure the obligation to purchase common stock.