Dominion Energy redeems $360m. in preferred stock, leverages $2 billion

On By Littum

RICHMOND, Va., 13 November 2024 /PRNewswire/ — Dominion Energy, Inc. (NYSE: D), announced today that it will redeem all of its outstanding shares for cash. 4.65% Series B Fixed Rate Reset Cumulative Redeemable Perpetual Preferred Share, No Par Value (Series B Preferred Share), effective December 15, 2024 (the Redemption Date), at a price of $1,000 share, which is equal to the liquidation preference per share for the B preference share. Because the redemption date is not a banking day, the redemption will be processed on December 16, 2024. There are 360,410 shares of Series B Preferred Stock outstanding with an aggregate liquidation preference of approximately 360 million dollars.

A regular, half-yearly dividend on the series B preferred stock of $23.25 share will be paid separately on December 16, 2024 to holders of record at the close of business on December 13, 2024 in the usual manner. Accordingly, the redemption price for the Series B Preferred Stock does not include accumulated and unpaid dividends.

The redemption of the Series B Preferred Stock is consistent with Dominion Energy’s previously announced plans to use the proceeds from the company’s May 2024 issuance of 2 billion dollars of enhanced junior subordinated bonds to, among other things, opportunistically retire, redeem or repurchase outstanding corporate securities. There is no change in the company’s financing guidelines.

Assuming that Dominion Energy commits sufficient funds to pay the redemption price prior to the Redemption Date, dividends on Series B Preferred Shares will cease to accrue on and after the Redemption Date and all rights of holders of shares of Series B Preferred Shares as of The Redemption Date ends, except for the right to receive the Redemption Price without interest.

The transfer and paying agent for the Series B Preferred Shares is:

Broadridge Corporate Issuer Solutions, Inc.
51 Mercedes Way
Edgewood, NY 11717

This press release does not constitute an announcement of redemption. Dominion Energy will issue a notice of redemption in accordance with the terms of the Series B Preferred Stock later today, November 13, 2024.

About Dominion Energy
Dominion Energy (NYSE: D), headquartered in Richmond, Huh., provides regulated electric service to 3.6 million homes and businesses in Virginia, North Carolina and South Carolina and regulated natural gas service to 500,000 customers in South Carolina. The company is one of the nation’s leading developers and operators of regulated offshore wind and solar energy and the largest producer of carbon-free electricity in New England. The company’s mission is to provide the reliable, affordable and increasingly clean energy that powers its customers every day. Please visit DominionEnergy.com to learn more.

Forward-looking statements
This release contains certain forward-looking statements that are subject to a number of factors that could cause actual events or results to differ from those included in those statements. These factors include that the company has funds legally available for the redemption at the time of the redemption as required by Virginia law, as well as the factors identified in Dominion Energy’s Forms 10-K and 10-Q filed with US Securities and Exchange Commission. Dominion Energy refers readers to these discussions for additional information. Any forward-looking statement speaks only as of the date on which it is made, and Dominion Energy undertakes no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date on which it is made.

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SOURCE Dominion Energy