Southern Co issues $750 million in senior notes due 2035

In a recent move to bolster its financial structure, Southern Co has successfully issued $750 million in Series 2024B 4.85% Senior Notes due March 15, 2035. This transaction was formalized on September 4, 2024, under an Underwriting Agreement with major financial institutions including BofA Securities, Mizuho Securities USA, Morgan Stanley, PNC Capital Markets, and RBC Capital Markets.

The issuance was registered under the Securities Act of 1933, aligning with the company's shelf registration statement. The newly issued debt has been slated for listing on the New York Stock Exchange. Southern Co, a leading energy company based in Atlanta, Georgia, has not disclosed the specific use of the proceeds from this debt offering.

The legal framework for the issuance was prepared by Troutman Pepper Hamilton Sanders LLP, which provided legal opinions on the notes and related tax matters. The firm also consented to the use of its opinions in the SEC filing, which serves as a testament to the legal due diligence observed in the process.

In other recent news, Southern Company (NYSE:SO), a prominent energy provider, has exceeded Q2 estimates, demonstrating growth and resilience, especially in its electric and gas businesses.

The company's robust performance, with adjusted earnings per share reaching $1.10, was driven by a continued investment in state-regulated utilities and increased electricity sales due to warmer weather.

Southern Company's electric system showed exceptional reliability during a recent heat wave, managing the third highest June peak load on record.

The company's strategic approach to natural gas transportation, capacity, and storage was instrumental in managing these peak demands. Looking ahead, Southern Company projects an adjusted earnings per share of $1.30 for the third quarter.

Recent developments also include the company's consideration of a $3 billion project to provide gas capacity for future large loads, pending regulatory approval.

InvestingPro Insights

In the context of Southern Co's recent debt issuance, it's noteworthy to consider the company's financial health and market performance through key metrics. According to InvestingPro data, Southern Co boasts a market capitalization of $97.7 billion, reflecting its significant presence in the energy sector. The company's P/E ratio stands at 21.18, which, coupled with a PEG ratio of 0.43, suggests that Southern Co is trading at a low price relative to near-term earnings growth. This could be an attractive point for investors seeking companies with growth potential that are not overvalued by the market.

Furthermore, Southern Co has demonstrated a longstanding commitment to shareholder returns, maintaining dividend payments for 54 consecutive years and currently offering a dividend yield of 3.26%. This level of consistent dividend growth can be particularly appealing to income-focused investors. However, it's important to note that seven analysts have revised their earnings downwards for the upcoming period, which might indicate potential headwinds or a conservative outlook on the company's future earnings.

For those interested in delving deeper into the company's prospects, there are additional InvestingPro Tips available. These tips provide further insights into Southern Co's performance and can help investors make more informed decisions. To explore these insights, visit the dedicated page at https://www.investing.com/pro/SO.

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