SO · 8-K · 20260803PR000058
Convertible Debt Offering
SOUTHERN CO · 2026-08-03 · Importance 64 · Surprise 42 · In source text
Southern Company announced private placements of $650 million of convertible senior notes due December 15, 2027, and $1.5 billion of convertible senior notes due September 15, 2029. Initial purchasers may buy up to an additional $97.5 million of the 2027 notes and $225 million of the 2029 notes through 13-day options. The senior unsecured notes will pay interest semiannually, with final interest rates, conversion prices and other terms determined at pricing. Upon conversion, Southern Company may satisfy its obligations with cash, common stock or a combination, subject to cash payments up to the principal amount.
Key facts
- Southern Company announced offerings of $1.5 billion in aggregate principal amount of its convertible senior notes due September 15, 2029. source
- Southern Company announced offerings of $650 million in aggregate principal amount of its convertible senior notes due December 15, 2027. source
- Southern Company expects to grant initial purchasers options to purchase up to an additional $225 million in aggregate principal amount of the 2029 Convertible Notes for settlement within 13 days from, and including, the date the Convertible Notes are first issued. source
- Southern Company expects to grant initial purchasers options to purchase up to an additional $97.5 million in aggregate principal amount of the 2027 Convertible Notes for settlement within 13 days from, and including, the date the Convertible Notes are first issued. source
- Final terms of each series of Convertible Notes, including the initial conversion price and interest rate, will be determined at the time of pricing. source
- The 2027 Convertible Notes will mature on December 15, 2027 unless earlier repurchased or converted in accordance with their terms. source
- The 2029 Convertible Notes will mature on September 15, 2029 unless earlier repurchased or converted in accordance with their terms. source
- Upon conversion Southern Company will pay cash up to the aggregate principal amount of the Convertible Notes of the applicable series to be converted and pay or deliver cash, shares of Southern Company’s common stock, or a combination, at Southern Company’s election, for any remainder in excess of the aggregate principal amount. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | probable | — | Southern Company announced offerings of $1.5 billion in aggregate principal amount of its convertible senior notes due September 15, 2029. |
| cash | positive | probable | — | Southern Company announced offerings of $1.5 billion in aggregate principal amount of its convertible senior notes due September 15, 2029. |
| liability | negative | probable | — | Southern Company announced offerings of $650 million in aggregate principal amount of its convertible senior notes due December 15, 2027. |
| cash | positive | probable | — | Southern Company announced offerings of $650 million in aggregate principal amount of its convertible senior notes due December 15, 2027. |
| liability | negative | probable | — | Southern Company expects to grant initial purchasers options to purchase up to an additional $225 million in aggregate principal amount of… |
| cash | positive | probable | — | Southern Company expects to grant initial purchasers options to purchase up to an additional $225 million in aggregate principal amount of… |
| liability | negative | probable | — | Southern Company expects to grant initial purchasers options to purchase up to an additional $97.5 million in aggregate principal amount… |
| cash | positive | probable | — | Southern Company expects to grant initial purchasers options to purchase up to an additional $97.5 million in aggregate principal amount… |