Southern Company Prices $2.375 Billion in Convertible Debt Offering

The offering comprises $725 million in notes due in 2027 and $1.65 billion in notes maturing in 2029. The 2027 notes carry a 2.125% interest rate with an initial conversion price of approximately $104.56 per share, while the 2029 notes offer a 3.50% rate with a conversion price of $118.50. These figures reflect premiums of 12.5% and 27.5%, respectively, over the company’s closing stock price on August 3, 2026.

Southern Company plans to allocate roughly $403 million of the net proceeds to repurchase its outstanding 4.50% Series 2024A notes due in 2027. By settling these existing obligations through negotiated transactions, the firm aims to optimize its balance sheet. Any remaining capital from the offering, which is expected to close on August 6, 2026, will be used to pay down short-term debt and support general operations across its utility subsidiaries.