By Sheri Kasprzak
New York, Sept. 13 - Southern Co. sold $400 million 2.375% five-year senior notes on Monday to yield 85 basis points over Treasuries, according to a term sheet.
The notes, which mature Sept. 15, 2015, were priced at 99.981 to yield 2.379%.
The notes (Baa1/A-/A) were sold through joint bookrunners Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. The co-managers are Aladdin Capital LLC, BB&T Capital Markets and Loop Capital Markets LLC.
Proceeds will be used to redeem all or a portion of the $250 million in series C 5.75% notes due Nov. 15, 2015; to repay a portion of the company's outstanding $511 million in short-term debt as of Sept. 10, 2010; and to fund other general corporate needs.
The company intends to deliver a notice of redemption for the senior notes connected with the issuance of the series 2010A notes.
Atlanta-based Southern Co. is the electric utility parent company of Alabama Power, Georgia Power, Gulf Power and Mississippi Power.
| Issuer: | Southern Co.
|
| Issue: | Series 2010A senior notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2015
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Co-managers: | Aladdin Capital LLC, BB&T Capital Markets, Loop Capital Markets LLC
|
| Coupon: | 2.375%
|
| Price: | 99.981
|
| Yield: | 2.379%
|
| Spread: | 85 bps over Treasuries
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A
|
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