By Stephanie N. Rotondo
Seattle, Aug. 10 – Dominion Resources Inc. priced $1.25 billion of 6.75% 2016 series A equity units due 2019 on Wednesday, according to a press release.
There is a $150 million greenshoe.
RBC Capital Markets LLC, Mizuho Securities USA Inc., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.
The $50-par units will initially be issued as 2016 series A corporate units holding a contract to purchase common stock and two 1/40 undivided beneficial ownership interests in 2% series A-1 and A-2 $1,000-par remarketable subordinated notes due 2021 and 2024, respectively.
The notes are subject to a remarketing beginning no earlier than May 13, 2019.
The purchase contract requires holders to purchase a variable number of common shares no later than Aug. 15, 2019. The reference price is $74.73, the closing price as of Aug. 9. The threshold price is $93.4056, an approximately 25% premium over the reference price.
Proceeds will be used for general corporate purposes, including to fund, in part, the company’s merger with Questar Corp.
Dominion is a Richmond, Va.-based producer and transporter of energy.
| Issuer: | Dominion Resources Inc.
|
| Securities: | 2016 series A equity units
|
| Amount: | $1.25 billion
|
| Greenshoe: | $150 million
|
| Maturity: | Aug. 15, 2019
|
| Bookrunners: | RBC Capital Markets LLC, Mizuho Securities USA Inc., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Distribution rate: | 6.75%
|
| Price: | Par of $50
|
| Reference price: | $74.73
|
| Threshold appreciation price: | $93.4056
|
| Premium: | 25%
|
| Pricing date: | Aug. 10
|
| Settlement date: | Aug. 15
|
| Expected listing: | NYSE: DCUD
|
| Stock symbol: | NYSE: D
|
| Stock price: | $74.73 as of Aug. 9 close
|
| Market capitalization: | $46.28 billion
|
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