Dominion offers $900 million mandatory convertible equity units at 6.625%-7.125%, up 22.5%-27.5%

By Rebecca Melvin

New York, June 24 – Dominion Resources Inc. plans to price $900 million of three-year mandatory convertible equity units, or 18 million units at $50 par, after the market close Wednesday that were talked to yield 6.625% to 7.125% with an initial conversion premium of 22.5% to 27.5%, according to a syndicate source.

The registered deal has a $100 million greenshoe and a maturity date of July 1, 2017.

Proceeds are for general corporate purposes and to fund its growth plan, including the Cover Point liquefaction project.

Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC, BNP Paribas Securities Corp. and Goldman Sachs & Co. are joint bookrunning managers for the offering.

Dominion is a Richmond, Va.-based energy company.

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