2026-03-19 17:38:53
Southern Company Issues $1.3 Billion in Junior Subordinated Notes Due 2058
Expected Stock impact: Slightly Positive
On March 16, 2026, The Southern Company entered into an Underwriting Agreement with several financial institutions, including Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, for the issuance of $1.3 billion in Series 2026A 6.00% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due April 1, 2058. This issuance is part of the company's strategy to enhance its capital structure and manage its financing needs effectively. The notes will be registered under the Securities Act of 1933 and are expected to be offered to the public shortly after the agreement is finalized. The proceeds from this offering will be utilized for general corporate purposes, which may include refinancing existing debt, funding capital expenditures, and supporting ongoing operations. The notes will bear interest at a rate of 6.00% until the first interest reset date, after which the rate will adjust based on the Five-Year Treasury Rate plus a margin. This issuance reflects the company's commitment to maintaining a robust financial position while providing investors with a competitive yield. The Southern Company continues to navigate the evolving energy landscape, focusing on sustainable growth and operational efficiency.
