Southern Co up after $1.75 bln equity units deal

Southern

04/11/2025 17:11

** Shares of utility Southern Company SO.N up 0.3% at $93.40 on Tues after debt-refinancing deal

    ** Atlanta, Georgia-based SO late Mon sold
    35 mln equity units at $50 for $1.75 bln gross raise

    ** The 3-year mandatory convertible securities priced with 7.125% annual dividend and threshold appreciation price of $116.44, 25% above stock's last close (reference price) of $93.15

    ** SO shares on Mon ended down 1% after co unveiled offering t
    o repurchase a portion of its 3.875% convertible notes due Dec 2025 and 4.5% convertible notes due Jun 2027

    ** It plans to use remaining net proceeds to repay debt, for general purposes, including investments in subsidiaries

    ** BofA, JP Morgan and Mizuho are joint bookrunners for offering

    ** With the move on the session, SO stock up 13.5% YTD compared to roughly 17% gain for S&P 500 Utilities sector .SPLRCU

** Avg rating among 25 analysts is "hold" and median PT is $102.25, per latest LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))