Georgia Power issues $1.6 billion in senior notes

Georgia Power Co. has entered into agreements for the issuance and sale of $1.6 billion in senior notes, according to a recent 8-K filing with the Securities and Exchange Commission. The company, a subsidiary of Southern Company (NYSE:SO), finalized the underwriting agreements on February 24, 2025, detailing three series of notes with varying interest rates and maturities. According to InvestingPro data, this issuance adds to the company’s existing total debt of $19.9 billion, as the utility provider manages its capital structure while maintaining strong revenue growth of 12% over the last twelve months.

The Atlanta-based electric services provider will issue $400 million of Series 2025A Floating Rate Senior Notes due September 15, 2026, with the interest rate to be determined. Additionally, $500 million of Series 2025B 4.85% Senior Notes are set to mature on March 15, 2031, and $700 million of Series 2025C 5.20% Senior Notes will come due on March 15, 2035.

These debt securities were registered under the Securities Act of 1933 through the company’s shelf registration statement, allowing for a more streamlined issuance process. The underwriting syndicate includes major financial institutions such as Barclays (LON:BARC) Capital Inc., Goldman Sachs & Co. LLC, and Wells Fargo (NYSE:WFC) Securities, LLC, among others.

The indentures related to these notes were dated as of today, March 3, 2025, and include the terms and conditions under which the notes are to be issued. Legal opinions and tax considerations concerning the issuance of the notes were also provided by Troutman Pepper Locke LLP, as documented in the exhibits attached to the filing.

Investors and market watchers often scrutinize such filings for insights into a company’s financial strategy and leverage. The proceeds from the sale of these notes are typically used for corporate expenses, refinancing existing debt, or funding investment projects, although the specific use of proceeds was not detailed in the filing. InvestingPro analysis reveals the company’s current ratio of 0.72 and substantial EBITDA of $5.8 billion, providing crucial context for investors evaluating the company’s debt management capabilities. For deeper insights into Georgia Power’s financial health and detailed metrics, subscribers can access over 30 additional financial indicators on InvestingPro.

This financial maneuver indicates Georgia Power’s proactive approach to managing its capital structure and ensuring liquidity for upcoming obligations, supported by its robust annual revenue of $11.3 billion. The information in this article is based on the company’s press release statement and complemented by real-time financial data from InvestingPro.

In other recent news, Georgia Power Company has issued $600 million in senior notes, marking a significant financial development for the electric services provider. The Series 2024D 4.55% Senior Notes, due in 2030, were underwritten by a consortium that includes J.P. Morgan Securities LLC. This issuance is part of a shelf registration statement previously filed with the SEC and is intended to strengthen Georgia Power’s financial standing to support ongoing infrastructure and service investments. The company formalized this transaction with an Underwriting Agreement and entered into a Seventy-Second Supplemental Indenture to Senior Note Indenture. Legal opinions and consents from Troutman Pepper Hamilton Sanders LLP confirmed the validity of the notes and addressed related tax matters. The offering was made on the New York Stock Exchange, where Georgia Power’s Series 2017A 5.00% Junior Subordinated Notes are also listed. This move underscores Georgia Power’s strategic financial planning and commitment to maintaining robust capital resources. The recent SEC filing provides transparency and essential details for investors regarding this financial maneuver.

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