Dominion Energy Proposes Multi-Tranche Senior Notes Offering Due 2029 and 2037
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Key Takeaways
- Dominion Energy filed a preliminary prospectus for 2026 Series B (due 2029) and Series C (due 2037) Senior Notes.
- Goldman Sachs & Co. LLC and Mizuho are acting as joint book-running managers for the offering.
- Proceeds from the debt issuance are designated for general corporate purposes, which may include debt repayment.
- The notes include a 101% redemption clause triggered by a defined Tax Credit Event.
- The offering is restricted to entities that are not classified as 'specified foreign entities' under the Internal Revenue Code.
Dominion Energy (NYSE: D), Inc. disclosed a new debt offering through a Form 424B5 filing with the U.S. Securities and Exchange Commission. The preliminary prospectus outlines a two-part issuance of senior notes, though the total principal amount and specific interest rates for the tranches have not yet been finalized.
The 2026 Series B Senior Notes are scheduled to mature on November 15, 2029, with interest payments commencing on May 15, 2027. The 2026 Series C Senior Notes carry a longer maturity date of January 15, 2037, with the first interest payment scheduled for July 15, 2027. Both series will be issued in book-entry form through The Depository Trust Company, with Goldman Sachs & Co. LLC and Mizuho serving as joint book-running managers.
Dominion stated that it may redeem the notes at any time at specified redemption prices. Notably, the filing includes a provision for a "Tax Credit Event" redemption. If such an event occurs, the company may redeem either series of notes in whole at 101% of the principal amount. The company does not intend to list these notes on any securities exchange or automated quotation system.
The filing also includes specific restrictions regarding "specified foreign entities" (SFEs). By purchasing the notes, investors must represent that they are not SFEs as defined by the Internal Revenue Code. This restriction is part of the eligibility criteria for the offering, which is expected to settle on or about a date in November 2026.
