Southern Company to Sell Subordinated Notes–Updated

UPDATE–as noted in the comments below the SEC Filing is now in. This is a very typical issue, with a early call date in 2025 and a maturity in 2080.

The preliminary prospectus can be read here.

Giant utility Southern Company (SO) will be selling a issue of $25 baby bonds.

No firm details are available (SEC filing is not in yet),

EarlyBird had some preliminary details very today showing a potential 5.125% coupon with an investment grade rating. If you Prefer posted “5% area” so it should come in the 5.0% to 5.125% area–I would be surprised if it were higher.

SO has 3 subordinated notes outstanding now and Georgia Power (a division of SO) has 1 issue outstanding.

You can see the outstanding issues on the “Baby Bond” page–and decide how a 5.00-5.125% issue would stack up.

22 thoughts on “Southern Company to Sell Subordinated Notes–Updated”

  1. Surprisingly this seems to have picked up an otc listing. Symbol STHNP. Will see if it actual trades under this

    1. Ah, lower than expected although 4.95 actually seems like the right coupon for an IG (BBB?) baby bond from a utility. If it was 5.125%, I’d consider buying it for a flip. Anything 5% and above for BBB is good in this environment.

    1. Steve, according to Fidelity, the bond you listed was issued in June 2017 but is not available to trade via Fidelity. Maybe because it has a 200,000 minimum investment quantity.

      1. More power to them and thanks be to mcg and Newman for posting. More value added to your site as always, Tim

      1. mcg – This is a $25 baby bond and will be listed…. “The Company intends to apply to list the Series 2020A Junior Subordinated Notes on the New York Stock Exchange. If the application is approved, the Company expects trading in the Series 2020A Junior Subordinated Notes to begin within 30 days after the date that the Series 2020A Junior Subordinated Notes are first issued.”

        1. Sorry to clarify – I’m just saying it won’t get an otc symbol or listing. I’m already involved in the issue and aware of the mechanics 🙂

    1. This will not trade OTC Tex as it is a baby bond. Early access to the issue may be secured by a call to your broker once the CUSIP is know.

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