Summary
Dominion Energy, Inc. (D) has announced its intention to launch a cash tender offer to repurchase all of its outstanding 4.65% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock. The offer price is set at $997.50 per share, plus accrued and unpaid dividends, for the 800,000 outstanding shares, representing an aggregate liquidation preference of $800 million. This tender offer is being funded by the net proceeds from a proposed public offering of junior subordinated notes. This move suggests Dominion Energy is looking to manage its capital structure, potentially reducing its preferred equity obligations and associated dividend payments. Investors holding the Series B Preferred Shares should carefully review the official offer documents when they become available, as the tender offer is contingent upon the successful settlement of the notes offering and has specific commencement and expiration dates. While the company is not making a recommendation, the offer provides an opportunity for preferred shareholders to exit their investment at a defined price.
Key Highlights
- 1Dominion Energy to launch a cash tender offer for all outstanding 4.65% Series B Preferred Shares.
- 2Offer price is $997.50 per share, plus accrued and unpaid dividends.
- 3The tender offer covers 800,000 shares, with an aggregate liquidation preference of $800 million.
- 4Funding for the tender offer will come from proceeds of a proposed public offering of junior subordinated notes.
- 5The tender offer is expected to commence around May 7, 2024, and expire around June 4, 2024.
- 6Completion of the tender offer is contingent on the settlement of the notes offering.
- 7The company is not making a recommendation to preferred shareholders on whether to tender their shares.