Southern Company announces equity units offering
Southern Company (NYSE: SO) announced a public offering of 35 million equity units at a stated amount of $50 per unit (aggregate $1.75 billion) with an underwriter option for an additional 5 million units (aggregate $250 million). Each equity unit includes a contract to purchase common stock and two 1/40 undivided interests in remarketable senior notes.
Proceeds are intended to repurchase portions of its Series 2023A and 2024A convertible notes, repay short-term debt, repay or mature Series 2023A notes, satisfy redemption of up to $1.25 billion Series 2020B notes, and for general corporate purposes.
Southern Company (NYSE: SO) ha annunciato un'offerta pubblica di 35 milioni di unità azionarie a un importo dichiarato di $50 per unità (in totale $1,75 miliardi) con un'opzione di sottoscrizione per ulteriori 5 milioni di unità (in totale $250 milioni). Ogni unità azionaria comprende un contratto per l'acquisto di azioni ordinarie e due interessi indivisi da 1/40 in note senior remarketable.
Proventi destinati a riacquistare parti delle sue note convertibili Series 2023A e 2024A, a rimborsare debito a breve termine, a rimborsare o far maturare note Series 2023A, a soddisfare la redenzione di fino a $1,25 miliardi di note Series 2020B e per scopi corporate generali.
Southern Company (NYSE: SO) anunció una oferta pública de 35 millones de unidades de acciones a un precio declarado de $50 por unidad (en conjunto $1.75 mil millones) con una opción de suscripción para 5 millones de unidades adicionales (conjunto $250 millones). Cada unidad de acciones incluye un contrato para comprar acciones comunes y dos intereses indivisos de 1/40 en notas senior remarketable.
Los ingresos se destinarán a recomprar partes de sus notas convertibles Series 2023A y 2024A, a pagar deudas a corto plazo, a pagar o vencer las notas Series 2023A, a satisfacer la redención de hasta $1.25 mil millones de las notas Series 2020B, y para fines corporativos generales.
Southern Company (NYSE: SO)는 3,500만 유닛의 주식단위를 명시가 $50 per unit인 공개매출로 발표했습니다(총액 $1.75십억). 추가로 5백만 유닛에 대한 인수인 옵션도 있습니다(총액 $250백만). 각 주식단위에는 보통주를 매입하기 위한 계약과 1/40의 미분할 이익 두 개가 포함된 remarketable senior notes의 지분이 포함됩니다.
모금된 자금은 Series 2023A 및 2024A 전환사채의 일부를 재매입하고, 단기부채를 상환하며, Series 2023A 채권을 상환하거나 만기되도록 하고, 최대 $1.25 십억의 Series 2020B 채권의 상환을 충족시키며, 일반 기업 목적에 사용될 예정입니다.
Southern Company (NYSE: SO) a annoncé une offre publique de 35 millions d'unités d'equité à un montant déclaré de $50 par unité (au total 1,75 milliard de dollars) avec une option de souscription pour 5 millions d'unités supplémentaires (au total 250 millions de dollars). Chaque unité d'equité comprend un contrat d'achat d'actions ordinaires et deux intérêts indivis de 1/40 dans des notes senior remarketable.
Les produits seront destinés à racheter des parties des notes convertibles Series 2023A et 2024A, à rembourser des dettes à court terme, à rembourser ou faire mûrir les notes Series 2023A, à satisfaire le remboursement jusqu'à 1,25 milliard de dollars des notes Series 2020B, et à des fins générales d'entreprise.
Southern Company (NYSE: SO) kündigte ein öffentliches Angebot von 35 Millionen Equity-Einheiten zu einem festgelegten Betrag von 50 $ pro Einheit (insgesamt 1,75 Milliarden $) an, mit einer Underwriter-Option für zusätzliche 5 Millionen Einheiten (insgesamt 250 Millionen $). Jede Equity-Einheit enthält einen Kaufvertrag für Stammaktien und zwei ungeteilte 1/40-Anteile an remarketable Senior Notes.
Die Erlöse sollen verwendet werden, Teile der wandelbaren Notes Series 2023A und 2024A zurückzukaufen, kurzfristige Verbindlichkeiten zu tilgen, die Series 2023A-Anleihen zu tilgen oder fällig werden zu lassen, die Rückzahlung von bis zu 1,25 Milliarden $ der Series 2020B-Anleihen sicherzustellen und für allgemeine Unternehmenszwecke zu verwenden.
Southern Company (NYSE: SO) أعلنت عن عرض عام لـ 35 مليون وحدة أسهم بسعر مُعلن قدره $50 لكل وحدة (إجمالي 1.75 مليار دولار) مع خيار من المُتعهد لــ 5 ملايين وحدة إضافية (إجمالي 250 مليون دولار). تتضمن كل وحدة حقوق شراء الأسهم واثنين من المصالح غير المقسمة بمقدار 1/40 في notes senior remarketable.
سيتم تخصيص العائدات لإعادة شراء أجزاء من سنداتها القابلة للتحويل Series 2023A و2024A، لسداد الدين قصير الأجل، لسداد أو استحقاق سندات Series 2023A، لتلبية سداد حتى $1.25 مليار من سندات Series 2020B، ولغايات عامة للشركة.
- $1.75B primary offering (35 million units at $50)
- Underwriter option adds up to $250M (5 million units)
- Proceeds targeted to repurchase outstanding convertible notes
- Proceeds available to repay short-term debt and fund $1.25B Series 2020B redemption
- Equity units include future stock purchase contracts that may cause share dilution
- No assurance on how much of the Existing Convertible Notes will be repurchased
- Repurchases and redemptions depend on negotiated terms tied to market prices
Insights
Southern Company plans a
Southern Company will sell 35 million equity units in a public offering with a stated amount of
The transaction is a capital-structure reallocation rather than an operational change; its effects depend on the final amount allocated to repurchases versus debt repayment and the degree holders hedge or unwind convertible-arbitrage positions. Risks disclosed include uncertain repurchase amounts and negotiated terms, potential market activity by note holders that could affect the effective reference price for the stock-purchase contracts, and the usual execution and market conditions tied to offerings made under an effective shelf registration.
Watch for the prospectus supplement and the actual sizing/price of the offering at pricing and any announced note repurchase terms contemporaneous with pricing; near-term developments are expected around pricing and any immediate note repurchases (timing: at pricing and shortly thereafter) and the
Southern Company intends to use a portion of the net proceeds from this offering to repurchase a portion of its Series 2023A
Contemporaneously with the pricing of the equity units, Southern Company expects to enter into one or more separate and privately negotiated transactions with a limited number of holders of the Existing Convertible Notes to use a portion of the proceeds of the offering to repurchase a portion of the Existing Convertible Notes on terms to be negotiated with each such holder. The terms of each note repurchase transaction are anticipated to be individually negotiated with each such holder of the Existing Convertible Notes and will depend on several factors, including the market price of Southern Company's common stock and the trading price of the applicable Existing Convertible Notes at the time of each such note repurchase. Southern Company may also repurchase outstanding Existing Convertible Notes following the completion of the offering of the equity units. No assurance can be given as to how much, if any, of the Existing Convertible Notes will be repurchased or the terms on which they will be repurchased.
Southern Company expects that holders of the Existing Convertible Notes that sell their Existing Convertible Notes to Southern Company in any note repurchase transaction may enter into or unwind various derivatives with respect to Southern Company's common stock and/or purchase or sell shares of Southern Company's common stock in the market to hedge their exposure in connection with these transactions. In particular, Southern Company expects that many holders of the Existing Convertible Notes employ a convertible arbitrage strategy with respect to the Existing Convertible Notes and have a short position with respect to Southern Company's common stock that they would close, through purchases of Southern Company's common stock and/or the entry into or unwind of economically equivalent derivatives transactions with respect to Southern Company's common stock, in connection with Southern Company's repurchase of their Existing Convertible Notes for cash. This activity could increase (or reduce the size of any decrease in) the market price of Southern Company's common stock or the equity units at that time and could result in a higher effective reference price for the stock purchase contract component of the equity units.
BofA Securities, J.P. Morgan and Mizuho will be joint book-running managers for the offering.
The offering will be made under an effective shelf registration statement filed with the
Southern Company is an energy provider serving 9 million customers across the Southeast and beyond through its family of companies. The company owns electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a distributed energy distribution company, a fiber optics network and a telecommunications services provider.
Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the planned equity units offering, the use of proceeds from the offering and the note repurchase transactions. Southern Company cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Company's Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025 and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: global and
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SOURCE Southern Company
FAQ
What size offering did Southern Company (SO) announce on November 3, 2025?
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Will the equity units offering for Southern Company (SO) cause dilution to shareholders?
Who are the joint book-running managers for Southern Company's (SO) equity units offering?
Can Southern Company (SO) guarantee repurchase amounts for its Existing Convertible Notes?
