Summary
Dominion Resources, Inc. (now Dominion Energy, Inc.) filed an 8-K on May 26, 2016, to report on the successful completion of the optional remarketing of $550 million aggregate principal amount of its 2013 Series B 1.18% remarketable subordinated notes due 2019. This event involved a reset of the interest rate on these notes from 1.18% to 2.962% per annum. The company did not receive any proceeds from this remarketing; instead, the funds were used to purchase a portfolio of treasury securities maturing shortly thereafter.
Key Highlights
- 1Completion of the optional remarketing of $550 million in subordinated notes.
- 2The interest rate on the Series B Notes was reset from 1.18% to 2.962% per annum.
- 3Dominion Resources, Inc. did not receive any proceeds from the remarketing.
- 4Proceeds from the remarketing were used to acquire treasury securities maturing on June 23, 2016.
- 5The company expects to use funds from the maturing treasury securities to settle purchase contracts related to its 2013 Series B Equity Units on July 1, 2016.
- 6The Series B Notes were redesignated as 2.962% Junior Subordinated Notes due 2019 following the remarketing.
Frequently Asked Questions
The remarketing was an optional event for the holders of the notes originally issued as components of the 2013 Series B Equity Units. The primary impact for investors was the reset of the interest rate on these notes from 1.18% to 2.962% per annum.
No, Dominion Resources, Inc. did not receive any proceeds from the remarketing. The funds were used to purchase a portfolio of treasury securities that were scheduled to mature on June 23, 2016.
Dominion Resources expects to use a portion of the funds generated from the maturity of these treasury securities to settle purchase contracts associated with the 2013 Series B Equity Units on July 1, 2016.
This event pertains to the refinancing of existing subordinated notes. The principal amount remains the same, but the interest rate on these specific notes has been adjusted. The company also indicates an upcoming settlement for equity units, which will utilize funds generated from this transaction.