Dominion Resources starts exchange for 2.125% convertibles

New York, Nov. 10 - Dominion Resources Inc. has begun an exchange offer for its 2.125% convertible senior notes due 2023 in response to new accounting standards for contingent convertible securities.

The Richmond, Va., energy company is offering new 2.125% convertible senior notes due 2023 which are identical to the existing convertibles except that on conversion holders will receive cash up to the principal amount and any remaining value in stock. The existing notes are payable in stock only.

Dominion Resources is offering an exchange fee of $2.50 per $1,000 principal amount, according to an S-4 filing with the Securities and Exchange Commission.

The exchange runs through midnight ET on Dec. 9.

Dominion said the exchange is in response to new accounting rules for contingently convertible securities which require the calculation of diluted earnings per share to reflect conversion of the securities, whether or not the contingent trigger has been met.

Morgan Stanley is dealer manager (800 624-1808 or 212 761-1941). D.F. King & Co. Inc. is the information agent (banks and brokerages call 212 269-5550, others call 800 758-5378).

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