Southern Co. Announces Offering Of $1.25 Bln Of Convertible Senior Notes Due June 15, 2028

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(RTTNews) - Southern Co. (SO) announced an offering of $1.25 billion in aggregate principal amount of its convertible senior notes due June 15, 2028 in a private placement to qualified institutional buyers.

In addition, Southern Company expects to grant the initial purchasers of the Convertible Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Convertible Notes are first issued, up to an additional $200 million in aggregate principal amount of the Convertible Notes.

According to the company, Final terms of the Convertible Notes, including the initial conversion price, interest rate and certain other terms of the Convertible Notes, will be determined at the time of pricing. The Convertible Notes will be senior, unsecured obligations of Southern Company. Interest on the Convertible Notes will be paid semiannually. The Convertible Notes will mature on June 15, 2028, unless repurchased or converted in accordance with their terms prior to such date.

The company plans to use a portion of the net proceeds from this offering to repurchase a portion of its Series 2023A 3.875% Convertible Senior Notes due December 15, 2025 and its Series 2024A 4.50% Convertible Senior Notes due June 15, 2027, in each case through individually negotiated transactions with a limited number of holders thereof, effected through one of the initial purchasers of the Convertible Notes or its affiliate.

The company intends to use any remaining net proceeds to repay all or a portion of its outstanding commercial paper borrowings and for other general corporate purposes, which may include investment in its subsidiaries.