newsfilter
← Latest News
PR Newswire·

Southern Company announces pricing of equity units

SO
  • Southern Company priced an offering of 35 million 2026 Series A Equity Units at $50 per unit for a total stated amount of $1.75 billion.
  • Each unit comprises a stock purchase contract, a 1/40 interest in $1,000 principal Series 2026C Notes due 2031, and a 1/40 interest in $1,000 principal Series 2026D Notes due 2034.
  • The notes are subject to remarketing no earlier than June 13, 2029, with the offering expected to close on November 17, 2026.
  • Total annual distributions on the units are set at 8.625 percent, derived from note interest & stock purchase contract payments.
  • The reference price is $92.47 per share, with a threshold appreciation price of $115.58, representing a 25 percent premium.
  • Holders must purchase a variable number of common stock shares no later than December 15, 2029.
  • Underwriters have an option to purchase up to 5 million additional units within 13 days of issuance for over-allotment coverage.
  • Net proceeds are estimated at approximately $1.724 billion, or $1.970 billion if the over-allotment option is fully exercised.
  • Southern Company plans to use $135.3 million of net proceeds to repurchase $125.8 million of its Series 2024A Convertible Senior Notes due 2027.
  • Remaining proceeds will be used to repay short-term indebtedness & fund general corporate purposes, including subsidiary investments.
  • BofA Securities & Barclays are acting as joint book-running managers for the offering.
  • Southern Company warns that note repurchases may trigger convertible arbitrage hedging activity, potentially impacting the market price of its common stock.
Company
Southern Company
Keywords
Southern Company