Southern Co. on Aug. 13 priced a $1.50 billion offering of 2019 series A equity units.
Each of the 30 million equity units will be issued at a stated amount of $50. Each equity unit will consist of a contract to purchase Southern Co. common stock in the future and two 0.025% undivided beneficial ownership interests in remarketable junior subordinated notes.
Total annual distributions on the equity units will be at the rate of 6.75%.
Underwriters have the option to purchase up to an additional 4.5 million of 2019 series A equity units, worth $225 million, to cover overallotments.
Southern plans to use net proceeds from this offering 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.