By Andrea Heisinger
New York, Aug. 16 - Southern Co. priced $500 million of 1.95% five-year notes on Tuesday to yield Treasuries plus 105 basis points, according to a market source.
The notes were priced at the tight end of guidance, which was in the 110 bps area.
The notes (Baa1/A-/A) were priced at 99.848 to yield 1.982%. They have a make-whole call at Treasuries plus 15 bps.
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC.
Co-managers were Commerz Markets LLC, BNP Paribas Securities Corp., Blaylock Robert Van LLC, Guzman & Co., Lebenthal & Co. LLC and Touissant Capital Partners LLC.
Proceeds will be used to repay a portion of short-term debt and for general corporate purposes.
The utility is based in Atlanta.
| Issuer: | Southern Co.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2016
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Co-managers: | Commerz Markets LLC, BNP Paribas Securities Corp., Blaylock Robert Van LLC, Guzman & Co., Lebenthal & Co. LLC, Touissant Capital Partners LLC
|
| Coupon: | 1.95%
|
| Price: | 99.848
|
| Yield: | 1.982%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Trade date: | Aug. 16
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A
|
| Price talk: | 110 bps area
|
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