Electric and natural gas supplier
Dominion Resources Inc.
) announced that it will sell 20 million equity units, in two
series of 10 million each. The units will be offered pursuant to
an automatic shelf registration statement previously filed with
the Securities and Exchange Commission.
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The equity units will be issued at $50 per unit and will consist
of a contract to purchase common stock issued by Dominion in the
future. In addition, the equity unitholders will have a 1/20
undivided beneficial ownership interest in a remarketable
subordinated note having a principal amount of $1,000.
As per the underwriting agreement, the underwriters to the issue
were given an option to purchase 1 million additional equity
units of Dominion Resources to cover over-allotments, if any.
Dominion intends to utilize the net proceeds from the equity
offering for general corporate purposes and fund its future
development plans, including the Cove Point liquefaction project.
The LNG liquefaction project in the Dominion Cove point facility
is expected to play an important role in driving growth at the
company. Dominion has plans to begin construction of this
5.25-MTPA (million tons per annum) facility in 2014 subject to
regulatory approval. The liquefaction process is expected to
begin from 2017 and become a hub for LNG export and import.
Dominion Resources currently carries a Zacks Rank #3 (Hold).
Other electric utilities like
DTE Energy Company
El Paso Electric Co.
) are performing well and currently have a Zacks Rank #2 (Buy).
Richmond, Va. based Dominion Resources Inc. was founded in 1909.
The company together with its subsidiaries engages in producing
and transporting energy in the U.S. With approximately 15,500
employees, the company's market capitalization is $32.09 billion.