Alabama Power Co. sold $600 million of its series 2019A 3.45% senior notes due Oct. 1, 2049.
The Southern Co. subsidiary plans to use net proceeds for general corporate purposes, including its ongoing construction program and the expected procurement of additional generating capacity.
Interest on the notes is payable semiannually on April 1 and Oct. 1 of each year, starting April 1, 2020, according to a free writing prospectus filed Sept. 12. The notes have a spread to benchmark Treasury of 120 basis points.
The issue was expected to be rated A1 by Moody's, A by S&P Global Ratings and A+ by Fitch Ratings.
BofA Securities Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC acted as joint book-running managers. BB&T Securities LLC division BB&T Capital Markets LLC, BBVA Securities Inc., Regions Securities LLC, Synovus Securities Inc., Apto Partners LLC, Cabrera Capital Markets LLC, Loop Capital Markets LLC and Samuel A. Ramirez & Co. Inc. served as co-managers.
