Summary
Dominion Energy, Inc. (D) has taken significant steps to bolster its liquidity position in light of evolving market conditions. On March 15, 2020, the company entered into a $500 million 364-day term loan, followed by a $700 million 364-day revolving credit facility on March 19, 2020. These new credit facilities, totaling $1.2 billion, mature in March 2021 and are intended to supplement existing cash reserves, operational cash flow, and its existing $6.0 billion revolving credit facility. In addition to these new credit arrangements, Dominion Energy also successfully closed an offering of $750 million in senior notes on March 19, 2020. Cumulatively, these financing activities, which occurred shortly after the initial disclosure on March 16, 2020, have increased the company's immediate available liquidity by approximately $2 billion. The proceeds from these financings are earmarked for general corporate purposes, including potential debt repayment such as commercial paper.
Key Highlights
- 1Dominion Energy secured a $500 million 364-day term loan on March 15, 2020.
- 2The company entered into a $700 million 364-day revolving credit facility on March 19, 2020.
- 3The new revolving credit facility has an option to increase borrowings by up to an additional $500 million.
- 4Both new credit facilities mature in March 2021.
- 5Dominion Energy closed a $750 million senior notes offering on March 19, 2020.
- 6These financing activities collectively increased immediate available liquidity by nearly $2 billion.
- 7Proceeds from these financings can be used for general corporate purposes, including debt repayment.