New Issue: Alabama Power sells $700 million 3.05% 10-year notes at 120 bps spread

By Rebecca Melvin

Concord, N.H., March 2 – Alabama Power Co. priced $700 million of 3.05% series 2022A senior notes due March 15, 2032 (A1/A-/A+) on Wednesday, according to an FWP filed with the Securities and Exchange Commission.

The notes priced at 99.931 to yield 3.058%, with a spread of Treasuries plus 120 basis points.

There will be an optional make-whole call followed by a par call.

MUFG, RBC Capital Markets LLC and U.S. Bancorp Investments Inc. are the bookrunners.

Proceeds will be used for general corporate purposes, including the company’s continuous construction program.

The issuer is an electric utility based in Birmingham, Ala., and a wholly owned subsidiary of Southern Co.

Issuer:	Alabama Power Co.
Amount:	$700 million
Issue:	Series 2022A senior notes
Maturity:	March 15, 2032
Bookrunners:	MUFG, RBC Capital Markets LLC and U.S. Bancorp Investments Inc.
Co-managers:	Regions Securities LLC, BBVA Securities Inc., FNH Financial Securities Corp., TD Securities (USA) LLC, Academy Securities Inc., Cabrera Capital Markets LLC, CastleOak Securities LP, Samuel A. Ramirez & Co. Inc.
Counsel to issuer:	Balch & Bingham LLP and Troutman Pepper Hamilton Sanders LLP
Counsel to underwriters:	Hunton Andrews Kurth LLP
Coupon:	3.05%
Price:	99.931
Yield:	3.058%
Spread:	Treasuries plus 120 bps
Call:	Make-whole call at Treasuries plus 20 bps until Dec. 15, 2031, then a par call
Trade date:	March 2
Settlement date:	March 7
Ratings:	Moody’s: A1
	S&P: A-
	Fitch: A+
Distribution:	SEC registered
Cusip:	010392FX1

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