Southern Company Prices Jr Subordinated Notes

Utility Southern Company (SO) has priced their new issue of baby bonds.

The issue priced at 4.95%, disappointing, but not surprising that it is under 5%.

The company will sell 40 millions shares (bonds) and they will carry a Baa3 from Moodys, BBB from S&P and BBB- from Fitch.

The issue has a early redemption available, at the company’s option in 2025 and a maturity date in 2080.

NOTE–mcg pointed out, and I have verfied, that OTC FINRA shows a OTC Grey Market ticker for this issue so we show it in the grid below. I did find trading on the OTC at $25.09 today. This is unusual, although not unheard of for a baby bond to trade OTC Grey Market so if you have an interest you should watch your broker for an active ticker as shown below.

Jerry Mac had the pricing hours ago on this new issue.

The pricing term sheet for the new issue is here.

10 thoughts on “Southern Company Prices Jr Subordinated Notes”

    1. Georges–I believe that ticker was in mistake. The permanent ticker is SOJD but I haven’t see trading.

  1. SOJA, SOJB, and SOJC did NOT trade as high as one would have expected. They own Santee Cooper right? Anyhoo I did ‘some’ of the new issue.

  2. SOJB and SOJC have a current yield of about 4.95%. I don’t see why this would have much potential for capital gains. So even for a short term trade, I don’t see the opportunity for it to trade much above $25.

    I am going to continue to pass on this one (as well as the other low rate coupons).

    1. Both SOJB and SOJC have a call risk.
      Can’t understand who buys SOJA at these prices, which i beleive will be redempted in October and will bring nothing to the buyer…

  3. Placed my order at TD for 400 shares. Closed the day at $25 even with a trading range of 24.97 – 25.10. 481,075 shares traded.

      1. kapil–you will need to call the bond desk with the CUSIP. Originally ticker was set up OTC , but I think that was invalid.

        CUSIP 842587800

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