Dominion Energy Inc. on Dec. 13 completed the issuance and sale of 800,000 shares of its 4.65% series B fixed-rate reset cumulative redeemable perpetual preferred stock.
Dividends on shares will be payable on the liquidation preference amount, on a cumulative basis, semiannually in arrears on the 15th day of June and December each year, starting June 15, 2020. The initial dividend rate will be 4.65% annually from and including the date of original issuance to, but excluding, Dec. 15, 2024. On and after the first call date, the dividend rate for each reset period will be equal to the five-year U.S. Treasury rate as of the most recent reset dividend determination date plus a spread of 2.993%.
The company intends to use net proceeds from this offering for general corporate purposes and to repay short-term debt.
BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. acted as joint book-running managers.