Loan & DebtAug 4, 2026, 06:07 AM
Southern Co. Upsizes & Prices $2.375B Convertible Notes
AI Summary
Southern Company announced the upsize and pricing of $2.375 billion in aggregate principal amount of convertible senior notes. This includes $725 million of Series 2026A 2.125% notes and $1.65 billion of Series 2026B 3.50% notes, reflecting upsizes of $75 million and $150 million respectively. The company plans to use approximately $403 million of the net proceeds to repurchase $369 million of its Series 2024A 4.50% Convertible Senior Notes, with the remainder allocated to short-term debt repayment and general corporate purposes.
Key Highlights
- Upsized and priced $725 million Series 2026A 2.125% Convertible Senior Notes due December 15, 2027.
- Upsized and priced $1.65 billion Series 2026B 3.50% Convertible Senior Notes due September 15, 2029.
- Series 2026A notes upsized by $75 million; Series 2026B notes upsized by $150 million over previously announced sizes.
- Granted initial purchasers options for an additional $108.75 million (2026A) and $247.5 million (2026B) in notes.
- Intends to use approximately $403 million of net proceeds to repurchase $369 million of Series 2024A 4.50% Convertible Senior Notes.
- Remaining net proceeds will be used to repay short-term debt and for general corporate purposes.
Price Impact
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