Summary
Dominion Energy, Inc. (D) filed an 8-K on June 1, 2022, to report amendments to its articles of incorporation concerning its Series A Cumulative Perpetual Convertible Preferred Stock. The primary change involves the dividend rate for this preferred stock. For the dividend period from June 1, 2022, to August 31, 2022, the dividend rate will remain at 1.75% per year. However, for all subsequent dividend periods beginning on or after September 1, 2022, the annual dividend rate will increase significantly to 6.75%. These amendments were made in conjunction with the successful remarketing of certain shares of Series A Preferred Stock and did not require shareholder approval. Importantly, the company has agreed to redeem all outstanding shares of this Series A Preferred Stock on September 1, 2022, subject to board approval, availability of funds, and proper notice. Investors should note the substantial increase in the preferred stock's dividend rate and the upcoming redemption date.
Key Highlights
- 1Amendment to Articles of Incorporation effective June 1, 2022, concerning Series A Preferred Stock.
- 2Dividend rate for Series A Preferred Stock increases from 1.75% to 6.75% annually for periods beginning September 1, 2022.
- 3The dividend rate remains 1.75% for the period of June 1, 2022, through August 31, 2022.
- 4Amendments were made in connection with a remarketing of Series A Preferred Stock shares.
- 5Shareholder approval was not required for these amendments.
- 6Dominion Energy has agreed to redeem all outstanding Series A Preferred Stock on September 1, 2022.
- 7Redemption is contingent upon board approval, sufficient legally available funds, and issuance of a redemption notice.