Southern Company announces equity units offering
Southern Company announced it plans to sell 30 million equity units in a public offering. Each equity unit will be issued in a stated amount of $50 ($1.5 billion aggregate stated amount) and will consist of a contract to purchase Southern Company common stock in the future and two 1/40 undivided beneficial ownership interests in remarketable junior subordinated notes each having a principal amount of $1,000. The company expects to grant to the underwriters an option to purchase an additional 4.5 million equity units ($225 million aggregate stated amount) solely for the purpose of covering over-allotments.
The company intends to use the net proceeds from this offering to repay all or a portion of the company's short-term indebtedness and for general corporate purposes, including investments in the company's subsidiaries.
Goldman Sachs & Co. LLC, Barclays, Citigroup and Morgan Stanley will be joint book-running managers for the offering.
The offering will be made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. Any offers of the securities will be made exclusively by means of a prospectus supplement and accompanying prospectus. Copies of these documents may be obtained by contacting Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, at telephone: 1-866-471-2526, facsimile: 212-902-9316 or by e-mailing prospectus-ny@ny.email.gs.com, Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Email: Barclaysprospectus@broadridge.com, Phone: (888) 603-5847, Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 Phone: (800) 831-9146 or Morgan Stanley at 180 Varick Street, 2nd Floor, New York, NY 10014.
Southern Company is an energy company serving 9 million customers through its subsidiaries. The company owns electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a distributed energy infrastructure company, a fiber optics network and telecommunications services.
