Utility Southern Co dips after boosted $2.4 bln convertible offering

Southern

04/08/2026 14:08

** Shares of utility Southern Company SO.N down 0.5% to $92.47 premarket on Tues after clinching raise to repay debt 
** Atlanta, Georgia-based firm late Mon announced pricing private offerings of $725 mln 2.125% convertible bonds (CBs) due Dec 2027 and $1.65 bln 3.5% CBs due Sept 2029
** SO shares slipped 1.7% to close at $92.94 on Mon after co announced combined offerings of $2.15 bln
** Initial conversion prices of $104.56 on 2027 CBs and $118.50 on 2029 CBs represent premiums of 12.5% and 27.5%, respectively, to last close
** It intends to use approx $403 mln of net offering proceeds to repurchase its 4.5% CBs due June, 2027, remainder to repay short-term debt and for other general purposes
** Through Mon, SO stock up ~7% YTD compared to ~4% advance in S&P 500 Utilities .SPLRCU
** Avg rating of 25 analysts covering the stock is "hold"; median PT $102, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))