Southern Company has announced an offering of $1.25 billion in aggregate principal amount of Convertible Senior Notes due June 15, 2028. The notes are being offered in a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933. Additionally, Southern Company has granted the initial purchasers an option to buy up to an additional $200 million of these Convertible Notes within 13 days from the initial issuance date. The company plans to use a portion of the proceeds to repurchase some of its existing convertible senior notes, specifically the Series 2023A 3.875% Convertible Senior Notes due December 15, 2025, and the Series 2024A 4.50% Convertible Senior Notes due June 15, 2027. Remaining proceeds will be used to repay commercial paper borrowings and for general corporate purposes, including investments in subsidiaries. Final terms, including the initial conversion price and interest rate, will be determined at the time of pricing. The notes will be senior, unsecured obligations and will pay interest semiannually until maturity, unless repurchased or converted earlier.
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