Dominion Energy plans loan repayment with $3.3 billion Cove Point asset sale proceeds

By Wendy Van Sickle

Columbus, Ohio, July 13 – Dominion Energy, Inc. plans to repay debt, including the existing $2.3 billion term loan secured by its interest in Cove Point LNG, LP, with proceeds of the sale of its 50% noncontrolling limited partner interest in Cove Point, according to a news release.

The company executed a definitive agreement to sell the interest to Berkshire Hathaway Energy, which operates the facility and owns a 100% general partner and 25% limited partner interest. After-tax proceeds are expected to be about $3.3 billion.

Along with repaying the term loan, the company will unwind its related in-the-money floating-to-fixed interest rate derivative, which is expected to result in proceeds of about $200 million.

Dominion Energy is a Richmond, Va.-based electric and natural gas energy company.

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