Summary
Dominion Energy, Inc. (D) has announced the successful underwriting of $1.5 billion in aggregate principal amount of Junior Subordinated Notes due 2056. This offering is split into two tranches: $1.0 billion of 2026 Series A Junior Subordinated Notes and $500 million of 2026 Series B Junior Subordinated Notes. These notes were registered under a previously effective Form S-3 registration statement and will be issued under specific supplemental indentures to the Company's existing Junior Subordinated Indenture II. The issuance of these junior subordinated notes represents a significant capital raise for Dominion Energy. Investors should note that these are junior subordinated notes, meaning they rank lower in priority of payment than senior debt, which carries higher risk but typically offers a higher yield. The proceeds from this offering are expected to be used for general corporate purposes, which may include funding capital expenditures and refinancing existing debt.
Key Highlights
- 1Dominion Energy priced $1.5 billion in Junior Subordinated Notes due 2056.
- 2The offering consists of $1 billion in Series A Junior Subordinated Notes and $500 million in Series B Junior Subordinated Notes.
- 3The notes were registered under a Form S-3 shelf registration statement, effective October 31, 2025.
- 4The issuance is governed by the Company's existing Junior Subordinated Indenture II, as supplemented by new indentures for each series of notes.
- 5The underwriting agreement was made with a syndicate of prominent financial institutions including Morgan Stanley, RBC Capital Markets, U.S. Bancorp Investments, and Wells Fargo Securities.
- 6The filing includes the underwriting agreement and the supplemental indentures as exhibits, along with legal opinions on the issuance and tax consequences.