Dominion Energy, Inc., announced that it will redeem for cash all outstanding shares of its 4.65% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, without par value (the Series B Preferred Stock), effective Dec. 15, 2024 (the Redemption Date), at a price of $1,000 per share, which is equal to the per-share liquidation preference of the Series B Preferred Stock. Because the Redemption Date is not a business day, the redemption will be processed on Dec. 16, 2024. There are 360,410 shares of Series B Preferred Stock outstanding with an aggregate liquidation preference of approximately $360 million.
A regular, semi-annual dividend on the Series B Preferred Stock of $23.25 per share will be paid separately on Dec. 16, 2024, to holders of record as of the close of business on Dec. 13, 2024, in the customary manner. Accordingly, the redemption price for the Series B Preferred Stock does not include any accumulated and unpaid dividends.
The redemption of the Series B Preferred Stock is consistent with Dominion Energy's previously announced plans to utilize the proceeds from the company's May 2024 issuance of $2 billion of enhanced junior subordinated notes to, among other things, opportunistically retire, redeem, or repurchase outstanding company securities. There is no change to the company's financing guidance.
Assuming that Dominion Energy sets aside sufficient funds to pay the redemption price prior to the Redemption Date, dividends on the Series B Preferred Stock will cease to accumulate on and after the Redemption Date and all rights of holders of shares of Series B Preferred Stock as of the Redemption Date will terminate, except for the right to receive the Redemption Price without interest.
