By Aleesia Forni
Virginia Beach, Aug. 19 – Southern Co. priced $750 million of senior notes (Baa1/A-/A) in three- and five-year tranches on Tuesday, according to a market source and two separate FWP filings with the Securities and Exchange Commission.
The company priced $400 million of 1.3% three-year notes at 99.968 to yield 1.311%, or Treasuries plus 42 basis points.
The notes sold at the tight end of the Treasuries plus 45 bps area talk, which had firmed from earlier guidance in the mid- to high-50 bps area over Treasuries.
A second tranche was $350 million of 2.15% notes due 2019 priced at 99.768 to yield 2.199%, or Treasuries plus 62 bps.
The notes sold at the tight end of the Treasuries plus 65 bps area talk, which had firmed from earlier guidance in the mid- to high-70 bps area over Treasuries.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and UBS Securities LLC are the joint bookrunners.
Proceeds will be used to pay a portion of the company’s outstanding short-term debt and for other general corporate purposes.
The utility company is based in Atlanta.
| Issuer: | The Southern Co.
|
| Issue: | Senior notes, series 2014A
|
| Amount: | $750 million
|
| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC
|
| Co-managers: | BB&T Capital Markets, CIBC World Markets Corp., Fifth Third Securities, Inc.
|
| Trade date: | Aug. 19
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2017
|
| Coupon: | 1.3%
|
| Price: | 99.968
|
| Yield: | 1.311%
|
| Spread: | Treasuries plus 42 bps
|
| Price talk: | Treasuries plus 45 bps area, tightened from Treasuries plus mid- to high-50 bps area
|
| Make-whole call: | Treasuries plus 7.5 bps
|
|
|
| Five-year notes
|
| Amount: | $350 million
|
| Maturity: | Aug. 15, 2019
|
| Coupon: | 2.15%
|
| Price: | 99.768
|
| Yield: | 2.199%
|
| Spread: | Treasuries plus 62 bps
|
| Price talk: | Treasuries plus 65 bps area, tightened from mid- to high-70 bps area over Treasuries
|
| Make-whole call: | Treasuries plus 10 bps prior to Aug. 1, 2019, then callable at par
|
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