What the company has priced
Southern Company announced on November 12 that it priced 35 million Series A equity units at a stated $50 each, totaling $1.75 billion. Each combines a future stock-purchase contract with senior-note interests.
The stated annual distribution rate is 8.625%, combining note interest and stock-purchase-contract payments. It is not the common-stock dividend. The contract requires a variable-share purchase by December 15, 2029, or the next business day.
Expected proceeds and timing
Closing is expected on November 17, subject to customary conditions. Southern estimates $1.724 billion of net proceeds after underwriting discounts and commissions, before other offering expenses. An underwriter over-allotment option could add up to $250 million of stated units; it has not been described as exercised.
The planned uses include approximately $135.3 million to repurchase $125.8 million principal of existing convertible notes. Remaining proceeds are intended for short-term debt repayment and general corporate purposes. These are planned uses, not completed payoffs.
