SO · 8-K · 20260804PR000060
Financing Activities
SOUTHERN CO · 2026-08-04 · Importance 64 · Surprise 42 · In source text
Southern Company priced $725 million of Series 2026A 2.125% convertible senior notes due December 15, 2027, and $1.65 billion of Series 2026B 3.50% convertible senior notes due September 15, 2029, with offerings expected to close on August 6, 2026. The initial purchasers may acquire an additional $108.75 million of Series 2026A notes and $247.5 million of Series 2026B notes within 13 days after issuance. Expected net proceeds are approximately $721 million and $1.63 billion, respectively, or up to approximately $829 million and $1.88 billion if the options are fully exercised. Southern Company plans to use approximately $403 million to repurchase approximately $369 million of Series 2024A 4.50% convertible notes due June 15, 2027, with the remainder allocated to repay short-term debt and other general corporate purposes, including possible subsidiary investment.
Key facts
- Southern Company estimates net proceeds from the Series 2026A offering will be approximately $721 million after deducting estimated initial purchasers' discounts and offering expenses. source
- Southern Company estimates net proceeds from the Series 2026B offering will be approximately $1.63 billion after deducting estimated initial purchasers' discounts and offering expenses. source
- If initial purchasers exercise their option in full, Southern Company estimates net proceeds from the Series 2026A offering will be approximately $829 million. source
- If initial purchasers exercise their option in full, Southern Company estimates net proceeds from the Series 2026B offering will be approximately $1.88 billion. source
- The offerings are expected to close on August 6, 2026, subject to customary closing conditions. source
- Southern Company intends to use the remaining net proceeds to repay all or a portion of its outstanding short-term debt and for other general corporate purposes, which may include investment in its subsidiaries. source
- The offer and sale of the Convertible Notes and shares issuable upon conversion have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction. source
- Southern Company serves 9 million customers across the Southeast and beyond through its family of companies. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | committed | — | Southern Company estimates net proceeds from the Series 2026A offering will be approximately $721 million after deducting estimated… |
| cash | positive | committed | — | Southern Company estimates net proceeds from the Series 2026B offering will be approximately $1.63 billion after deducting estimated… |
| liability | positive | probable | — | Southern Company intends to use the remaining net proceeds to repay all or a portion of its outstanding short-term debt and for other… |
| cash | negative | probable | — | Southern Company intends to use the remaining net proceeds to repay all or a portion of its outstanding short-term debt and for other… |