Summary
The Southern Company (SO) filed an 8-K on February 1, 2002, reporting on a significant financing event. On January 29, 2002, Southern Company Capital Funding, Inc. (Funding), a subsidiary, entered into an Underwriting Agreement for the issuance and sale of $400 million in Series A 5.30% Senior Notes due February 1, 2007. The Southern Company itself will guarantee these notes, indicating its direct support for this debt issuance. This debt issuance was registered under a shelf registration statement previously filed with the SEC, streamlining the process. The filing also includes key exhibits related to the transaction, such as the Underwriting Agreement, Senior Note Indenture, and supplemental indentures. Investors should note this event signifies a substantial increase in debt for the company, which will impact its capital structure and potentially its financial leverage ratios.
Key Highlights
- 1Southern Company Capital Funding, Inc. issued $400 million of Series A Senior Notes due February 1, 2007.
- 2The Southern Company provided a guarantee for the $400 million Senior Notes issued by its subsidiary.
- 3The notes carry a fixed interest rate of 5.30%.
- 4The issuance was conducted under a pre-existing shelf registration statement.
- 5Key transaction documents, including the underwriting agreement and note indentures, were filed as exhibits.
- 6The filing includes computations for the company's ratio of earnings to fixed charges.