BUZZ-Utility Southern Co dips after boosted $2.4 bln convertible offering
SO•Stock performance and analyst view
Through Monday, SO stock was up about 7% year to date compared with about a 4% advance in the S&P 500 Utilities index.
The average rating of 25 analysts covering the stock is "hold"; median price target is $102, according to LSEG data.
Use of proceeds and valuation details
SO shares slipped 1.7% to close at $92.94 on Monday after the company announced combined offerings of $2.15 billion.
Initial conversion prices of $104.56 on the 2027 convertible bonds and $118.50 on the 2029 convertible bonds represent premiums of 12.5% and 27.5%, respectively, to the last close.
The company intends to use approximately $403 million of net offering proceeds to repurchase its 4.5% convertible bonds due June 2027, with the remainder to repay short-term debt and for other general purposes.
Southern Company shares slip after convertible offering pricing
Shares of utility Southern Company SO.N were down 0.5% to $92.47 premarket on Tuesday after the company clinched a raise to repay debt.
Atlanta, Georgia-based firm late Monday announced pricing private offerings of $725 million 2.125% convertible bonds due Dec. 2027 and $1.65 billion 3.5% convertible bonds due Sept. 2029.
