8-KOther EventsExhibits & Filings

DOMINION ENERGY, INC 8-K Report, Corporate Update (Jun 5, 2018)

Filed June 5, 2018For Securities:D

Summary

Dominion Energy, Inc. (D) has filed an 8-K report to disclose the execution of an underwriting agreement for the sale of $300 million in aggregate principal amount of its 2018 Series B 4.25% Senior Notes due 2028. This offering is part of the company's established shelf registration and will be governed by a new supplemental indenture to its existing senior indenture. This issuance of debt is a standard capital-raising activity for a utility company like Dominion Energy. Investors should note the coupon rate of 4.25% and the maturity date in 2028, which provide a predictable income stream and a defined repayment schedule. The company is leveraging its access to public debt markets to fund its ongoing operations and potential future investments.

Key Highlights

  • 1Dominion Energy entered into an underwriting agreement for the sale of $300 million in Senior Notes.
  • 2The Senior Notes are Series B, carry a 4.25% interest rate, and mature in 2028.
  • 3The offering is conducted under a previously effective registration statement on Form S-3.
  • 4The Senior Notes will be issued under the Fifteenth Supplemental Indenture to the Company's June 1, 2015 Senior Indenture.
  • 5The underwriting agreement was executed with BNP Paribas Securities Corp. and Scotia Capital (USA) Inc. as representatives.
  • 6The filing includes the Underwriting Agreement, the Fifteenth Supplemental Indenture, and an opinion of counsel as exhibits.
  • 7James R. Chapman, Senior Vice President – Mergers & Acquisitions and Treasurer, signed the report on behalf of the company.

Frequently Asked Questions

This 8-K filing announces Dominion Energy's entry into an underwriting agreement to issue and sell $300 million of its 4.25% Senior Notes due 2028. It provides details about the agreement and the terms of the debt issuance.

The notes are the '2018 Series B 4.25% Senior Notes due 2028'. They have a principal amount of $300 million, an annual interest rate of 4.25%, and will mature on June 1, 2028.

This issuance represents a standard method for Dominion Energy, as a large utility, to raise capital. It is being conducted under an existing shelf registration, indicating it's a planned financing activity to support ongoing operations, capital expenditures, or refinancing needs.

As with any debt issuance, investors face credit risk (the risk that Dominion Energy may default on its payments) and interest rate risk (the risk that rising interest rates could decrease the market value of these fixed-rate notes). The specific risks would be detailed in the prospectus supplement related to this offering, which is not included in this 8-K but would have been filed separately.