Southern Co. prices tender for 1.85% notes, 2.15% notes due 2019

By Susanna Moon

Chicago, Jan. 23 – The Southern Co. said it priced the tender offer for its $1 billion of 1.85% senior notes due 2019, $350 million of series 2014B 2.15% senior notes due 2019 and $750 million of series 2018A floating-rate senior notes due 2020.

The tender offers were set to end at 5 p.m. ET on Jan. 23. The offers began Jan. 16.

The purchase price will be par for each $1,000 of principal amount of the floaters.

For the other two series, pricing for each $1,000 principal amount was set at 11 a.m. ET on Jan. 23 using the yield based on the bid-side price of a reference security plus a fixed spread as follows, according to a company update on Wednesday:

• $996.48 for the 1.85% notes, based on the 1.25% Treasury note due June 30, 2019 plus 15 basis points for a reference yield of 2.514%; and

• $996.78 for the 2.15% notes, based on the 1.25% Treasury note due Aug. 31, 2019 plus 10 bps for a reference yield of 2.59%.

Holders also will receive accrued interest up to but excluding the payment date, which is expected to be Jan. 24.

Southern said it plans to redeem any fixed-rate notes not purchased in the tender at a make-whole redemption price plus accrued interest to but excluding the redemption date. The issuer plans to redeem on Feb. 14 any of the floaters not purchased in the offers at par.

Global Bondholder Services Corp. (866 470-4300, 212 430-3774 or gbsc-usa.com/southern) is the depositary and information agent. The dealer manager is Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106).

Southern is an Atlanta-based electric utility company.

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