SO · News · 20260808N

Convertible Debt Financing

SOUTHERN CO · 2026-08-08 · Importance 45 · Surprise 42

Southern Company priced and upsized two convertible senior notes offerings totaling $2.375 billion initially: $725 million of 2.125% Series 2026A notes due December 15, 2027, and $1.65 billion of 3.50% Series 2026B notes due September 15, 2029. Approximately $403 million of proceeds was allocated to repurchase Series 2024A 4.50% convertible notes, with the balance designated for short-term debt repayment and general corporate purposes. Subsequent reporting described completed offerings totaling $2.73 billion, including $833.75 million due 2027 and $1.90 billion due 2029, while noting potential shareholder dilution and balance-sheet pressure from the conversion features.

Key facts

• Southern Company has completed several large senior unsecured convertible bond offerings to fund its substantial capital plan, which includes investments in data centers, renewables, and nuclear projects. source