By Wendy Van Sickle
Columbus, Ohio, Oct. 4 – Dominion Energy South Carolina, Inc. priced $500 million of 6.25% 30-year first mortgage bonds (A2/A/A+) on Wednesday at 99.434 to yield 6.292%, or a spread of 140 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes and to repay intercompany debt owed to Dominion Energy and commercial paper.
As of Sept. 30, the company had approximately $760 million of outstanding variable rate debt under an intercompany credit agreement with Dominion Energy. The applicable interest rate, based on the commercial paper rate and adjusted daily, was 5.6161% annually and the original stated maturity date of Dec. 9, 2023 is subject to automatic one-year extensions.
Also as of Sept. 30, Dominion had approximately $287 million of outstanding commercial paper with a weighted average yield of 5.6458% annually and a weighted average maturity of approximately 12 days.
Dominion Energy South Carolina is a subsidiary of Dominion Energy, Inc., a Richmond, Va.-based producer and transporter of energy.
| Issuer: | Dominion Energy South Carolina, Inc.
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| Amount: | $500 million
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| Issue: | First mortgage bonds
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| Maturity: | Oct. 15, 2053
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| Bookrunners: | Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | In-house and McGuireWoods LLP
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| Counsel to underwriters: | Troutman Pepper Hamilton Sanders LLP
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| Coupon: | 6.25%
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| Price: | 99.434
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| Yield: | 6.292%
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| Spread: | Treasuries plus 140 bps
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| Call option: | Make-whole call at Treasuries plus 25 bps until April 15, 2053; thereafter at par
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| Pricing date: | Oct. 4
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| Settlement date: | Oct. 6
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| Ratings: | Moody’s: A2
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| S&P: A
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| Fitch: A+
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| Distribution: | SEC registered
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| Cusip: | 25731VAB0
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