RICHMOND, Va., May 31, 2022 /PRNewswire/ -- Dominion Energy, Inc. (NYSE: D) announced today that it has successfully remarketed its Series A Cumulative Perpetual Convertible Preferred Stock (the Series A Preferred Stock). The remarketing was conducted pursuant to the terms of the Series A Preferred Stock, which was originally issued in June 2019 as a component of the Dominion Energy's 2019 Series A Corporate Units.
The remarketing is expected to close on June 1, 2022, subject to customary closing conditions. The proceeds of the remarketing will be used to settle with Dominion Energy on June 1, 2022, the purchase contracts that are a part of Dominion Energy's 2019 Series A Equity Units.
Upon closing of the remarketing, dividends on the Series A Preferred Stock will reset and accumulate at a fixed rate of 1.75% per year for the dividend period beginning on, and including, June 1, 2022, and ending on, but excluding, Sept. 1, 2022, and at a fixed rate of 6.75% per year for all dividend periods beginning on or after Sept. 1, 2022.
Under the original terms of the Series A Preferred Stock, the company may, at its option, redeem all or any portion of the outstanding Series A Preferred Stock on or after Sept. 1, 2022, which date was, consistent with the original terms of the Series A Preferred Stock, not changed in the remarketing. As previously disclosed, the company has agreed to redeem all outstanding shares of Series A Preferred Stock on Sept. 1, 2022, subject to closing of the remarketing, approval by the board of directors and customary legal requirements.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein. The remarketing has not been registered under the Securities Act of 1933, as amended (the Securities Act), and is being conducted pursuant to an exemption from such registration requirements. Any shares of Series A Preferred Stock subject to the remarketing may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from such registration requirements.
About 7 million customers in 13 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050.
This release contains certain forward-looking statements, including with respect to the anticipated closing of the remarketing of the company's Series A Cumulative Perpetual Convertible Preferred Stock. Factors that could cause actual results to differ from those included in these statements, many of which are outside of the company's control, include, but are not limited to, the performance of certain obligations by third parties, market conditions, and the lack of a material adverse change in the company's business and financial position. The company's business and financial position may be materially affected by a number of factors, which are identified in the company's Forms 10-K and 10-Q filed with the Securities and Exchange Commission. Dominion Energy refers you to those discussions for further information. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made.
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SOURCE Dominion Energy