Dominion Resources Begins Search For Buyer
Of Financial Services Subsidiary
RICHMOND, Va. – Dominion Resources Inc. (NYSE: D) said today
that it has begun identifying suitable buyers for Dominion Capital, its diversified
financial services subsidiary.
Thos. E. Capps, chairman, president and chief executive
officer, said:
"Dominion Capital has been a hard-working member of
our family, outperforming its peer companies over the last several years. Our
solid portfolio of diversified operating units has grown earnings 30 percent
annually since 1995 and has captured significant positions in specialized lending
markets.
"We’ve succeeded by putting in place a seasoned and
broadly talented management team, remaining focused on franchise value, and
pursuing an uncompromising risk management strategy."
Proceeds from the sale of Dominion Capital will be used
to finance Dominion Resources’ planned merger with Consolidated Natural Gas
Company (NYSE: CNG) and will be consistent with federal law governing energy
holding companies.
However, Capps noted that the company is under
no requirement to execute a near-term, forced divestiture. Capps said Dominion
Capital’s ultimate sale "is dependent on identifying a suitable buyer and agreeing
to suitable terms."
The sale of Dominion Capital is not expected before completion
of the merger with CNG. Dominion Resources and CNG have set an anticipated closing
date of January 28, 2000. Dominion Capital has three principal operating business
units:
First Source Financial LLP, headquartered in
Chicago, provides senior and subordinated mezzanine financing to middle-market
companies that need funds to expand, recapitalize or undertake buyouts. First
Source provides both senior and subordinated loans, and, in some instances,
takes an equity interest to provide additional return potential. The company
specializes in loan origination, underwriting, portfolio management, loan operations
and administration.
First Dominion Capital LLC, based in New York, is an integrated
merchant banking and asset management business. Its merchant banking operation
specializes in originating, structuring and syndicating complete financial solutions
for middle-market companies for leveraged buyouts, recapitalizations, acquisitions
and growth. The asset management operation acquires positions in leveraged senior
debt and high-yield transactions.
Saxon Mortgage Inc., headquartered in Richmond, Va., originates,
securitizes and services residential home equity and mortgage loans to individuals.
It is licensed to operate in 47 states. Saxon focuses on lending to consumers
who require non-conforming and sub-prime mortgage loans. The sub-prime credit
arena is fragmented, yet it offers more attractive profit margins than traditional
mortgage lending.
Parties interested in acquiring Dominion Capital assets
should contact:
David L. Heavenridge
President and CEO Dominion Capital Inc.
120 Tredegar Street
Richmond, VA 23219
(804) 819-2301 telephone
(804) 819-2214 fax
or
Hayden D. McMillian
Sr. Vice President & COO
Dominion Capital Inc.
120 Tredegar Street
Richmond, VA 23219
(804) 819-2303 telephone
(804) 819-2214 fax
