Southern Co issues $1.8B in junior notes

ATLANTA – Southern Company (NYSE:SO), a leading energy company with a market capitalization of $97 billion and annual revenue of $26.7 billion, has entered into an agreement to issue $1.8 billion in junior subordinated notes, according to a recent SEC filing. The notes, with a 6.375% fixed-to-fixed reset rate, are due March 15, 2055.

This financial move, dated Monday, was facilitated through an underwriting agreement with a consortium of banks, including Barclays (LON:BARC) Capital Inc., Citigroup (NYSE:C) Global Markets Inc., and others. The issuance is part of a shelf registration filed with the SEC.

The Series 2025B Junior Subordinated Notes are registered under the Securities Act of 1933. Troutman Pepper Locke LLP provided legal opinions regarding the issuance, confirming compliance with applicable laws.

Southern Company, headquartered in Atlanta, Georgia, is known for providing electric services and has a significant presence in the energy sector. The company’s common stock and various series of junior subordinated notes are traded on the New York Stock Exchange.

The proceeds from the note issuance will likely be used for general corporate purposes, which may include investment in infrastructure, debt repayment, or other operational needs.

Investors and the market will watch how this capital raise influences Southern Company’s financial structure and strategic investments. The company’s financial health and its ability to service its debt are of particular interest given the long-term nature of the notes.

The filing provides essential information for investors to understand the terms of the notes and the company’s obligations. This SEC filing is a public document and is part of Southern Company’s regular financial disclosures.

In other recent news, Southern Company reported its fourth-quarter 2024 earnings, which fell short of analyst expectations, with an adjusted earnings per share (EPS) of $0.50, missing the estimate of $0.53. However, the company’s revenue for the quarter slightly exceeded forecasts, reaching $6.34 billion compared to the consensus estimate of $6.31 billion. For the full year 2024, Southern Company reported earnings of $4.4 billion, or $4.02 per share, showing an increase from $4.0 billion, or $3.64 per share, in 2023.

Additionally, Mizuho (NYSE:MFG) Securities adjusted its outlook on Southern Company shares, raising the price target to $90 from the previous $85, while maintaining a Neutral rating. This adjustment followed Southern Company’s announcement of a new capital investment plan for 2025 to 2029, set at $62.8 billion, marking a 30% increase over the prior plan. The company anticipates a potential rate base growth of up to 8% and an annual sales growth of 8%.

Moreover, Southern Company announced the election of James O. Etheredge as an independent director to its Board of Directors, effective April 1, 2025. Etheredge brings extensive experience from his previous role as CEO - North America of Accenture plc (NYSE:ACN). These developments highlight Southern Company’s ongoing efforts in leadership, investment strategy, and financial performance.

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