Summary
Dominion Energy, Inc. (D) filed an 8-K on December 12, 2019, to report on the creation and subsequent issuance of a new series of preferred stock. Effective December 13, 2019, the company amended its articles of incorporation to establish the 4.65% Series B Fixed-Rate Reset Cumulative Redeemable Preferred Stock. This action represents a move to diversify its capital structure and potentially access new sources of funding. The company subsequently consummated the issuance and sale of 800,000 shares of this newly created Series B Stock on December 13, 2019, under an underwriting agreement with several major investment banks. The issuance was made under a previously effective registration statement. This offering indicates Dominion Energy's proactive capital management strategy, likely aimed at funding ongoing operations, capital expenditures, or refinancing existing debt.
Key Highlights
- 1Creation of a new series of preferred stock: 4.65% Series B Fixed-Rate Reset Cumulative Redeemable Preferred Stock.
- 2Amendment to articles of incorporation to authorize the new Series B Preferred Stock, effective December 13, 2019.
- 3Issuance and sale of 800,000 shares of Series B Preferred Stock on December 13, 2019.
- 4The stock issuance was conducted under an underwriting agreement with a syndicate of prominent financial institutions.
- 5The offering was made pursuant to a Form S-3 registration statement effective since June 2017.
- 6This action signals Dominion Energy's strategy to manage its capital structure and raise funds through equity offerings.