By Stephanie N. Rotondo
Phoenix, Oct. 1 – The Southern Co. priced $875 million of 6.25% $25-par series 2015A junior subordinated notes due Oct. 15, 2075 (expected ratings: Baa2/BBB/BBB+) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Interest will be payable on the 15th day of January, April, July and October, beginning Jan. 15. The company can defer the interest payments for up to 40 consecutive quarterly periods.
The notes become redeemable on or after Oct. 15, 2020 or upon a tax event at par plus accrued interest. Additionally, the notes can be redeemed prior to Oct. 15, 2020 and upon the occurrence of a rating event at 102% of par plus accrued interest.
The new securities will be listed on the New York Stock Exchange.
Proceeds will be used to pay a portion of outstanding short-term debt and for other general corporate purposes, including investments in subsidiaries.
Southern is an Atlanta-based electric utility company.
| Issuer: | The Southern Co.
|
| Securities: | Series 2015A junior subordinated notes
|
| Amount: | $875 million
|
| Greenshoe: | $125 million
|
| Maturity: | Oct. 15, 2075
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Coupon: | 6.25%
|
| Price: | Par of $25
|
| Yield: | 6.25%
|
| Talk: | 6.25% to 6.375%
|
| Call options: | On or after Oct. 15, 2020 or upon a tax event at par plus accrued interest, or upon a rating agency event at 102% of par plus accrued interest
|
| Pricing date: | Oct. 1
|
| Settlement date: | Oct. 8
|
| Expected ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB+
|
| Expected listing: | NYSE
|
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