By Cristal Cody
Tupelo, Miss., Jan. 6 – Southern Co. priced $1 billion of $25-par 4.95% junior subordinated notes due Jan. 30, 2080 (Baa3/BBB/BBB-) on Monday with a 4.95% coupon, according to a market source and an FWP filing with the Securities and Exchange Commission.
The fixed-rate notes were initially talked to price in a $250 million offering in the 5.125% area.
BofA Securities, Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.
The notes are redeemable on or after Jan. 30, 2025 at par.
Proceeds will be used to repay all or a portion of the company’s outstanding short-term debt, which totaled about $466 million as of Friday.
The company plans to apply to list the notes on the New York Stock Exchange.
Southern is an Atlanta-based electric utility company.
| Issuer: | Southern Co.
|
| Amount: | $1 billion
|
| Description: | Series 2020A junior subordinated notes
|
| Maturity: | Jan. 30, 2080
|
| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Senior co-managers: | PNC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Loop Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
|
| Coupon: | 4.95%
|
| Price: | Par of $25.00
|
| Yield: | 4.95%
|
| Call feature: | On or after Jan. 30, 2025 at par
|
| Trade date: | Jan. 6
|
| Settlement date: | Jan. 9
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 5.125% area
|
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