The Southern Company announced the pricing of an upsized private offering of two series of convertible senior notes totaling $2.375 billion. The offering consists of $725 million of Series 2026A notes due 2027 and $1.65 billion of Series 2026B notes due 2029. The offering is expected to close on August 6, 2026.
Key Details
- Offering Breakdown: The private placement includes $725 million of 2.125% Convertible Senior Notes due 2027 and $1.65 billion of 3.50% Convertible Senior Notes due 2029.
- Use of Proceeds: The company intends to use approximately $403 million of the net proceeds to repurchase approximately $369 million of its existing 4.50% Convertible Senior Notes due 2027. The remaining proceeds will be used to repay short-term debt and for general corporate purposes.
- Upsize and Option: The total offering was upsized by a combined $225 million. Initial purchasers have a 13-day option to purchase up to an additional $108.75 million of the 2027 series and $247.5 million of the 2029 series.