Southern Co. to price fixed-to-fixed reset rate junior subordinated notes due 2051

By Rebecca Melvin

Concord, N.H., May 3 – Southern Co. will price series 2021A fixed-to-fixed reset rate junior subordinated notes due Sept 15, 2051 (BBB), according to a 424B5 filed with the Securities and Exchange Commission.

The coupon will reset on Sept. 15, 2026 to rate equal to Treasuries plus a margin.

The notes are callable prior to the reset date on June 15, 2026 at par plus interest. They are also callable in whole but not in par at 102 plus interest if a rating agency makes changes in the equity credit criteria for securities such as these notes.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., MUFG, Scotia Capital USA Inc. and Trust Securities Inc. are the bookrunners.

The company intends to use the proceeds to redeem $1.5 billion of its 2.35% senior notes due July 1, 2021. It plans to use any remaining proceeds for other general corporate purposes.

Southern is an Atlanta-based gas and electric company.

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