WS Investor
21 May 2025, 09:56
Southern Company Announces $1.25 Billion Convertible Notes Offering Due 2028
Southern Company (NYSE: SO) has launched a $1.25 billion private placement of convertible senior notes due June 15, 2028, offered to qualified institutional buyers under Rule 144A. An additional $200 million may be offered if underwriters exercise their option within 13 days of issuance.
These unsecured notes will bear interest payable semiannually and are convertible into cash, shares, or a mix of both under specific conditions. Full conversion rights begin after March 15, 2028. Final pricing terms, including the interest rate and conversion price, will be determined at issuance.
Use of Proceeds:
• Partially repurchase Southern’s Series 2023A (3.875%) and Series 2024A (4.5%) Convertible Senior Notes
• Repay outstanding commercial paper borrowings
• Support general corporate purposes, including potential investments in subsidiaries
Repurchase negotiations with existing noteholders will be privately arranged and may trigger market activity, including closing short positions or derivative adjustments. This could influence the market price of Southern’s stock and the effective conversion price of the new notes.
Southern Company (NYSE: SO) has launched a $1.25 billion private placement of convertible senior notes due June 15, 2028, offered to qualified institutional buyers under Rule 144A. An additional $200 million may be offered if underwriters exercise their option within 13 days of issuance.
These unsecured notes will bear interest payable semiannually and are convertible into cash, shares, or a mix of both under specific conditions. Full conversion rights begin after March 15, 2028. Final pricing terms, including the interest rate and conversion price, will be determined at issuance.
Use of Proceeds:
• Partially repurchase Southern’s Series 2023A (3.875%) and Series 2024A (4.5%) Convertible Senior Notes
• Repay outstanding commercial paper borrowings
• Support general corporate purposes, including potential investments in subsidiaries
Repurchase negotiations with existing noteholders will be privately arranged and may trigger market activity, including closing short positions or derivative adjustments. This could influence the market price of Southern’s stock and the effective conversion price of the new notes.
