Georgia Power upsizes tender to buy $749.91 million from five notes

New York, May 21 – Georgia Power Co. announced the early results of its tender offer to buy five series of notes and increased the cap so that it can purchase $749,913,000 principal amount of the securities.

The tender was originally for a purchase price of $750 million excluding accrued interest.

At the enlarged size, the company will buy all tendered notes from series with acceptance priority levels one, two and three and none of the tendered notes from the other two series, according to a news release.

Settlement is planned for May 22.

No further notes will be accepted in the tender unless Georgia Power further increases the cap.

The early tender response along with pricing information is as follows:

• $88,618,000 was tendered from the $250 million of series 2007A 5.65% senior notes due 2037. All are to be accepted. Pricing will be set using the 2.75% Treasury due Nov. 15, 2047 plus 100 basis points;

• $326,193,000 was tendered from the $500 million of series 2009A 5.95% senior notes due 2039. All are to be accepted. Pricing will be based on the 2.75% Treasury due Nov. 15, 2047 plus 100 bps;

• $335,102,000 was tendered from the $600 million of series 2010B 5.4% senior notes due 2040. All are to be accepted. Pricing will be based on the 2.75% Treasury due Nov. 15, 2047 plus 100 bps;

• $320,791,000 was tendered from the $500 million of series 2010C 4.75% senior notes due 2040. None will be accepted. Pricing was to be based on the 2.75% Treasury due Nov. 15, 2047 plus 100 bps; and

• $18,818,000 was tendered from the $100 million of series N 5.75% senior notes due 2023. None will be accepted. Pricing was to be based on the 2.75% Treasury due April 30, 2023 plus 65 bps.

The purchases prices were scheduled to be set at 11 a.m. ET on May 21.

The total purchase price will include an early tender premium of $50.00 per $1,000 principal amount of notes tendered before the early tender deadline of 5 p.m. ET on May 18.

Holders will also receive accrued interest up to but excluding the settlement date.

The tenders will remain open until 11:59 p.m. ET on June 4.

Notes tendered before the early deadline will be given priority over those tendered afterward regardless of priority level.

Georgia Power said it expects to fund the tender using cash on hand or available liquidity.

The offers will help Georgia Power “mitigate credit metric impacts” for the federal tax reform legislation in December by reducing its debt and raising its common equity ratio, which is consistent with the order date April 3 of the Georgia Public Service Commission, according to a company announcement.

If any further tenders are accepted, they will settle on June 5.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424), MUFG Securities Americas Inc. (877 744-4532 or 212 405-7481) and UBS Securities LLC (888 719-4210 or 203 719-4210) are the dealer managers. Global Bondholder Services Corp. (866 470-4200, 212 430-3774 or contact@gbsc-usa.com) is the tender agent and information agent.

Georgia Power is an Atlanta-based electric utility and a subsidiary of Southern Co.

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