Southern Company prices $2.375 billion in convertible notes

Southern Company (NYSE: SO) priced two series of convertible senior notes totaling $2.375 billion in aggregate principal amount in private placements to qualified institutional buyers, the company announced Aug. 3, 2026.

The offering consists of $725 million of Series 2026A 2.125% Convertible Senior Notes due December 15, 2027, and $1.65 billion of Series 2026B 3.50% Convertible Senior Notes due September 15, 2029. The sizes represent upsizes of $75 million and $150 million, respectively, from previously announced amounts. Southern Company also granted initial purchasers options to purchase up to an additional $108.75 million of the Series 2026A notes and $247.5 million of the Series 2026B notes. The offerings are expected to close Aug. 6, 2026.

The Series 2026A notes carry an initial conversion price of approximately $104.56 per share, representing a 12.5% premium above Southern Company's last reported stock price on Aug. 3, 2026. The Series 2026B notes carry an initial conversion price of approximately $118.50 per share, a 27.5% premium to the same reference price.

Southern Company estimates net proceeds of approximately $721 million from the Series 2026A offering and approximately $1.63 billion from the Series 2026B offering, excluding any exercise of the purchasers' options.

The company said it intends to use approximately $403 million of proceeds to repurchase approximately $369 million in aggregate principal amount of its existing Series 2024A 4.50% Convertible Senior Notes due June 15, 2027, through individually negotiated transactions. Remaining proceeds are intended to repay short-term debt and for general corporate purposes, which may include investment in subsidiaries.

The notes have not been registered under the Securities Act of 1933 and may not be publicly offered or sold absent registration or an applicable exemption.

You May Also Be Interested In

• Southern Company plans $2.15 billion in convertible notes offerings
• Attovia Therapeutics prices IPO at $17 per share on Nasdaq
• East West Ave Acquisition Corp. raises $100M in Nasdaq IPO