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Southern Co. launches tender offers for up to $2.1B of senior debt

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According to Market Intelligence, December 2022

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Southern Co. launches tender offers for up to $2.1B of senior debt

Southern Co. on Jan. 16 launched cash tender offers to purchase up to $2.10 billion of senior notes.

The notes for which Southern is making the tender offer consist of $1 billion of 1.85% senior notes due July 1, 2019, $350 million of series 2014B 2.15% senior notes due Sept. 1, 2019, and $750 million of series 2018A floating rate senior notes due Feb. 14, 2020.

The company will fund the purchase of the notes with cash on hand received from the proceeds of the sale of Gulf Power Co. to NextEra Energy Inc.

For the 1.85% notes, Southern is offering, for every $1,000 of outstanding debt offered, a fixed spread of 15 basis points and for the 2.15% notes a fixed spread of 10 basis points, plus the applicable yield based on the bid-side price on Jan. 23. For the floating rate notes, Southern is offering $1,000 for every $1,000 of outstanding debt tendered.

The offers will expire at 5 p.m. ET on Jan. 23, unless extended or terminated earlier. The settlement date is expected to be Jan. 24.

Noteholders whose notes are validly tendered and accepted for purchase also will receive accrued and unpaid interest on their securities from the last interest payment date up to, but excluding, the settlement date.

Citigroup Global Markets Inc. will act as dealer manager.