Southern Co. greenshoe ups 6.25% $25-par notes due 2075 to $1 billion

By Stephanie N. Rotondo

Phoenix, Oct. 6 – The Southern Co.’s greenshoe on it offering of 6.25% $25-par series 2015A junior subordinated notes due Oct. 15, 2075 was exercised in full, lifting total issuance to $1 billion, according to a market source.

The initial issuance was $875 million, priced on Oct. 1. The over-allotment option was $125 million.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners. Co-managers were Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

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.

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