Summary
Dominion Energy, Inc. (formerly Dominion Resources, Inc.) has filed an 8-K to report on the completion of the optional remarketing of its 2014 Series A 1.50% remarketable subordinated notes due 2020. This event, which occurred on May 17, 2017, involved $1,000,000,000 aggregate principal amount of these notes. The interest rate on these Series A Notes has been reset to 2.579% per annum as a result of this remarketing, a notable increase from the original 1.50% rate. Importantly, Dominion Energy did not receive any proceeds directly from this remarketing. Instead, the funds raised were used to purchase treasury securities maturing on June 29, 2017. The company anticipates that a portion of these maturing funds will be used to settle purchase contracts associated with the original issuance of these notes as part of its 2014 Series A Corporate Units. This transaction is primarily a financial restructuring related to existing debt and associated purchase contracts rather than a new capital raise.
Key Highlights
- 1Completed optional remarketing of $1 billion of 2014 Series A 1.50% remarketable subordinated notes due 2020.
- 2The interest rate on the Series A Notes has been reset to 2.579% per annum from the original 1.50%.
- 3Dominion Energy did not receive proceeds from the remarketing; funds were used for treasury securities.
- 4The remarketing is linked to the settlement of purchase contracts originally issued as part of the 2014 Series A Corporate Units.
- 5The Series A Notes have been redesignated as '2.579% Junior Subordinated Notes due 2020'.
- 6The transaction involved Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as remarketing agents.