Utility Southern Co slips on planned $2.15 bln convertible bond sale

Southern

03/08/2026 12:11

** Shares of utility Southern Company SO.N slip 2.9% to $91.81 before the bell on Mon as co seeks raise to repay debt 
** Atlanta, Georgia-based SO announces private offerings of $650 mln convertible bonds (CBs) due Dec 2027 and $1.5 bln CBs due Sept 2029
     ** Co intends to use portion of net proceeds to repurchase its 4.5% CBs due 2027 and 3.25% CBs due 2028
** Any remainder to be used to repay all or portion of short-term debt and for other general purposes
** SO, which has about $109 bln market cap, on Thurs beat Wall Street's profit estimates on robust electricity demand from data centers as well as homes and businesses
** Through Fri close, stock up 8.4% YTD, outpacing 3.8% rise in S&P 500 Utilities .SPLRCU
     ** Of 25 analysts covering SO, recommendation breakdown is 7 "strong buy" or "buy", 16 "hold" and 2 "sell" ratings; median PT $101, per LSEG

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