SO · News · 20260803N
Convertible Debt Offering
SOUTHERN CO · 2026-08-03 · Importance 74 · Surprise 58 · No source text
Southern Company priced $725 million of 2.125% Series 2026A convertible senior notes due December 15, 2027, and $1.65 billion of 3.50% Series 2026B convertible senior notes due September 15, 2029. The final $2.375 billion offering was upsized by $75 million and $150 million, respectively, from the initially announced amounts. Initial purchasers received options for an additional $108.75 million of the 2027 notes and $247.5 million of the 2029 notes, exercisable within 13 days of issuance. Proceeds are expected to support repurchases of existing convertible notes, short-term debt repayment and general corporate purposes.
Key facts
- Southern Company announced private offerings of $650 million in aggregate principal amount of convertible senior notes due December 15, 2027 and $1.5 billion in aggregate principal amount of convertible senior notes due September 15, 2029. source
- Southern Company priced an upsized offering of $725 million aggregate principal amount of Series 2026A 2.125% Convertible Senior Notes due December 15, 2027 and $1.65 billion aggregate principal amount of Series 2026B 3.50% Convertible Senior Notes due September 15, 2029. source
- Southern Company granted initial purchasers options to purchase up to an additional $108.75 million of Series 2026A Convertible Notes and an additional $247.5 million of Series 2026B Convertible Notes, exercisable within 13 days from issuance. source
- Southern Company expected to grant initial purchasers options to purchase up to an additional $97.5 million of the 2027 Convertible Notes and up to an additional $225 million of the 2029 Convertible Notes, exercisable for settlement within 13 days from issuance. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | — | Southern Company priced an upsized offering of $725 million aggregate principal amount of Series 2026A 2.125% Convertible Senior Notes due… |
| cash | positive | committed | — | Southern Company priced an upsized offering of $725 million aggregate principal amount of Series 2026A 2.125% Convertible Senior Notes due… |
| liability | negative | contingent | — | Southern Company granted initial purchasers options to purchase up to an additional $108.75 million of Series 2026A Convertible Notes and… |
| cash | positive | contingent | — | Southern Company granted initial purchasers options to purchase up to an additional $108.75 million of Series 2026A Convertible Notes and… |