By Stephanie N. Rotondo
Seattle, Sept. 12 – The Southern Co. priced $800 million of 5.25% $25-par series 2016A junior subordinated notes due Oct. 1, 2076 (expected ratings: Baa3/BBB/BBB) on Monday, a market source reported.
Price talk on the 60-year notes was 5.25% to 5.375%. The deal came upsized from $250 million.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
The notes become callable Oct. 1, 2021 at par plus accrued interest. The issue can be redeemed prior to that date upon a tax event at par plus accrued interest. Additionally, upon a rating agency event, the notes can be called at 102 plus accrued interest.
Proceeds will be used to repay short-term debt and for other general corporate purposes.
Southern is an Atlanta-based gas and electric company.
| Issuer: | The Southern Co.
|
| Securities: | Series 2016A junior subordinated notes
|
| Amount: | $800 million
|
| Maturity: | Oct. 1, 2076
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Coupon: | 5.25%
|
| Price: | Par of $25
|
| Yield: | 5.25%
|
| Talk: | 5.25% to 5.375%
|
| Call options: | On or after Oct. 1, 2021 at par plus accrued interest; prior to that date upon a tax event at par plus accrued interest, or upon a rating agency event at 102 plus accrued interest
|
| Pricing date: | Sept. 12
|
| Settlement date: | Sept. 15
|
| Expected ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Expected listing: | NYSE
|
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