Dominion Energy Announces Redemption of Series B Preferred Stock
Dominion Energy, Inc. (NYSE: D) has made a significant announcement regarding its 4.65% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock. The company will redeem all outstanding shares for cash at a price of $1,000 per share, which corresponds to the liquidation preference for these shares. This redemption will take effect on the Redemption Date.
Details of the Redemption
The scheduled Redemption Date is approaching, and since it falls on a non-business day, the actual processing will occur the following day. Currently, there are 360,410 shares of Series B Preferred Stock outstanding, amounting to a total liquidation preference of about $360 million. As part of this decision, holders can expect a regular, semi-annual dividend that will be processed separately on the day after the Redemption Date.
Dividend Information
Holders of the Series B Preferred Stock will receive a dividend of $23.25 per share before the redemption takes place. This dividend is intended for those who are on record by a specific date. However, it’s important for shareholders to know that the total redemption price will not include any accumulated dividends that may be owed, thereby functioning as a clean break from the stock.
Company Strategy and Financial Guidance
Dominion Energy's actions reflect a strategic financial maneuver, aligning with its intentions to utilize funds generated from a previous issuance of $2 billion in enhanced junior subordinated notes. This initiative is part of a larger effort to manage debts actively, including the retirement and repurchase of other outstanding company securities. The company maintains its firm financing guidance in light of these actions.
Impact on Shareholders
Once the redemption takes place and funds are allocated appropriately, dividends on the Series B Preferred Stock will cease immediately post-redemption. Shareholders will lose rights associated with these shares except for the right to receive the redemption price, free of interest. Thus, the decision has significant implications for current shareholders of the Series B stocks.
Transfer and Paying Agent
Dominion Energy has designated Broadridge Corporate Issuer Solutions, Inc. as the transfer and paying agent for the Series B Preferred Stock. This agent will facilitate the redemption process and ensure that all transactions are handled effectively.
About Dominion Energy
Dominion Energy (NYSE: D), based in Richmond, Virginia, is a leading provider of regulated electricity and gas services. The company provides electricity to over 3.6 million homes and businesses across several states, including Virginia, North Carolina, and South Carolina. It also serves around 500,000 customers with natural gas in South Carolina. Notably, Dominion Energy is recognized as a major player in offshore wind and solar power developments and leads the production of carbon-free electricity in New England. The company’s mission revolves around delivering reliable, affordable, and cleans energy solutions daily.
Frequently Asked Questions
What is the redemption price for the Series B Preferred Stock?
The redemption price is set at $1,000 per share, which equals the liquidation preference of the stock.
When will the redemption of the Series B Preferred Stock occur?
The redemption will take effect on the Redemption Date, with processing set for the next business day.
Who will receive dividends before the redemption?
Holders of record as of the specified date prior to the redemption will receive the regular semi-annual dividend.
What is the role of Broadridge Corporate Issuer Solutions?
Broadridge Corporate Issuer Solutions, Inc. is responsible for managing the transfer and redemption process for the Series B Preferred Stock.
What is Dominion Energy's core mission?
The company's mission is to provide reliable, affordable, and increasingly clean energy solutions to its customers every day.
