Southern Co. completed the underwritten offering of 34,500,000 equity units for gross proceeds of $1.50 billion.
The offering included the overallotment option of 4,500,000 units. The company issued the equity units in the form of corporate units, according to an SEC filing.
The units, sold at $50 apiece, have an annual payout of 6.75%. Each unit will consist of a contract to purchase Southern common stock in the future and two 0.025% undivided beneficial ownership interests in remarketable junior subordinated notes.
Southern will use the net proceeds to repay all or a portion of its short-term indebtedness and for general corporate purposes, including investments in the company's subsidiaries.
Goldman Sachs & Co. LLC, Barclays, Citigroup, Morgan Stanley, BNP PARIBAS, Bank of America Merrill Lynch, J.P. Morgan, Scotia Howard Weil and Wells Fargo Securities are acting as joint book-running managers for the offering.
