SCE&G Announces Pricing of Its Any and All Tender Offer

Staff Report From South Carolina CEO

Tuesday, February 26th, 2019

South Carolina Electric & Gas Company. a wholly owned subsidiary of Dominion Energy, Inc., announced the pricing of its previously announced cash tender offer for any and all of its outstanding 3.500% First Mortgage Bonds due 2021, 4.100% First Mortgage Bonds due 2046 and 4.500% First Mortgage Bonds due 2064 (the SCE&G Any and All Bonds) (such offer, the SCE&G Any and All Offer).

The terms and conditions of the SCE&G Any and All Offer are described in the offer to purchase, dated Feb. 19, 2019 (the Offer to Purchase). Copies of the Offer to Purchase and the form of notice of guaranteed delivery are available at www.dfking.com/dei. Capitalized terms used in this press release and not defined herein have the meanings given to them in the Offer to Purchase.

The Total Consideration (as defined in the Offer to Purchase) for each $1,000 principal amount of the SCE&G Any and All Bonds validly tendered and accepted for purchase pursuant to the SCE&G Any and All Offer was determined in the manner described in the Offer to Purchase by reference to the applicable Fixed Spread set forth in the table below plus the applicable yield to maturity of the applicable U.S. Treasury Reference Security set forth in the table below based on the bid-side price of such Reference Security as measured as of 2:00 p.m., New York City time, on Feb. 25, 2019 (the SCE&G Any and All Price Determination Date).

The table below sets forth, among other things, the CUSIP Numbers, Fixed Spread, U.S. Treasury Reference Security and Total Consideration for the SCE&G Any and All Bonds as determined on the SCE&G Any and All Price Determination Date.

Title of Security

CUSIP

Number

Reference U.S. Treasury

Security

Bloomberg

Reference

Page

Fixed Spread

(basis points)

Total Consideration(1)

 

3.500% First Mortgage

Bonds due 2021

837004CL2

2.500% due 01/31/2021

FIT1

35

$1,015.10

 

4.100% First Mortgage

Bonds due 2046

837004CK4

3.375% due 11/15/2048

FIT1

100

$1,011.36

 

4.500% First Mortgage

Bonds due 2064

837004CH1

3.375% due 11/15/2048

FIT1

125

$1,043.62

 
             

(1)  Per $1,000 principal amount.

In addition to the Total Consideration, holders of the SCE&G Any and All Bonds whose SCE&G Any and All Bonds are accepted for purchase will also be paid accrued and unpaid interest with respect to their tendered SCE&G Any and All Bonds from, and including, the last interest payment date for such bonds to, but not including, the SCE&G Any and All Settlement Date (defined below), in each case rounded to the nearest cent. Accrued interest will be payable on the SCE&G Any and All Settlement Date.

The SCE&G Any and All Offer will expire at 5:00 p.m., New York City time, on Feb. 25, 2019, unless extended or earlier terminated (the SCE&G Any and All Expiration Time). SCE&G expressly reserves the right to extend the SCE&G Any and All Offer at any time and may amend or terminate such offer, if before such time as any SCE&G Any and All Bonds have been accepted for payment pursuant to the SCE&G Any and All Offer, any condition of such offer is not satisfied or, where applicable, waived by SCE&G.

SCE&G expects to settle the SCE&G Any and All Offer one business day following the SCE&G Any and All Expiration Time (the SCE&G Any and All Settlement Date). Assuming the SCE&G Any and All Offer is not extended and all conditions of such Offer have been satisfied or, where applicable, waived by SCE&G, SCE&G expects that the SCE&G Any and All Settlement Date will be Feb. 26, 2019.

Holders intending to utilize the notice of guaranteed delivery should refer to the discussion of the procedures for tendering through guaranteed delivery contained in the Offer to Purchase. SCE&G expects to settle with respect to any SCE&G Any and All Bonds validly tendered through guaranteed delivery and accepted for purchase on Feb. 28, 2019.

RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. are acting as dealer managers for the SCE&G Any and All Offer.