Southern Co. talks $1.5 billion three-year convertibles to yield 3.625%-4.125%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Feb. 23 – Southern Co. plans to price $1.5 billion of three-year convertible notes after the market close on Thursday with price talk for a coupon of 3.625% to 4.125% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $225 million.

The notes are non-callable.

They are putable upon a fundamental change.

The notes carry dividend protection via conversion ratio adjustments for dividends above 70 cents per quarter.

The convertibles will be settled in cash up to the principal amount with any remaining amount to be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to repay the company’s commercial paper borrowings and for general corporate purposes.

Southern Co. is an Atlanta-based energy provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.