BofA update shows where active managers are putting money
Dominion Energy, Inc. (NYSE:D), currently valued at $48.2 billion by market capitalization, has entered into an underwriting agreement for the issuance of $1.5 billion in senior notes, the company disclosed in a recent SEC filing. The agreement, dated March 6, 2025, involves the sale of two series of senior notes: $800 million of 2025 Series A 5.00% Senior Notes due 2030, and $700 million of 2025 Series B 5.45% Senior Notes due 2035. This new issuance adds to the company’s existing total debt of $42.6 billion, according to InvestingPro data.
The underwriting syndicate is led by MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc., and Wells Fargo (NYSE:WFC) Securities, LLC. These senior notes are part of the Senior Debt Securities registered under Rule 415 of the Securities Act of 1933, as per a registration statement that became effective on February 21, 2023. InvestingPro analysis indicates the company’s current ratio of 0.71 suggests tight liquidity, with short-term obligations exceeding liquid assets.
This financial move is facilitated through the Twenty-Eighth and Twenty-Ninth Supplemental Indentures to Dominion Energy’s June 1, 2015 Senior Indenture. Details of the underwriting agreement and the supplemental indentures have been filed with the SEC and are included as exhibits in the Form 8-K.
The issuance of these notes could be a strategic step for Dominion Energy to manage its capital structure or finance its operations and investments. The company, headquartered in Richmond, Virginia, operates in the electric services industry and is known for providing energy to various regions in the United States.
The information regarding this financial activity is based on a press release statement and has been made public as part of Dominion Energy’s regulatory disclosures. Investors and market watchers may view this development as an indicator of the company’s financial strategy and market activity.
In other recent news, Dominion Energy reported its fourth-quarter 2024 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.58, missing the forecast of $0.62, and reported revenue of $3.4 billion, below the anticipated $3.86 billion. Despite these misses, Dominion Energy reaffirmed its commitment to achieving 5-7% annual earnings growth through 2029. The company also announced an at-the-market stock offering aimed at raising up to $1.2 billion, as detailed in a filing with the Securities and Exchange Commission. This equity program involves sales agency agreements with financial institutions like Barclays (LON:BARC) and Goldman Sachs. Additionally, Dominion Energy’s Coastal Virginia Offshore Wind project is reported to be 50% complete, although costs have risen to $10.7 billion. The company remains optimistic about its long-term growth, bolstered by strategic investments in renewable energy and infrastructure.
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