8-KOther EventsExhibits & Filings

SOUTHERN CO 8-K Report, Corporate Update (Nov 16, 2005)

Filed November 16, 2005For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) announced a significant financing event through its subsidiary, Southern Company Capital Funding, Inc. (Funding). On November 8, 2005, an Underwriting Agreement was executed for the issuance and sale of $250 million in aggregate principal amount of Series C 5.75% Senior Notes, maturing on November 15, 2015. Southern Company itself has guaranteed these notes, providing a direct credit backing for investors. This issuance, registered under existing shelf registration statements, represents a strategic move by Southern Company to manage its capital structure and potentially fund ongoing operations or growth initiatives. The fixed interest rate of 5.75% provides certainty for the company regarding its debt servicing costs over the next decade, while the guarantee by the parent company offers a level of security to noteholders. Investors should note the involvement of multiple underwriters, suggesting broad market distribution for these notes.

Key Highlights

  • 1Southern Company subsidiary, Funding, to issue $250 million in Series C Senior Notes due November 15, 2015.
  • 2The Senior Notes will carry a fixed interest rate of 5.75%.
  • 3Southern Company provides a guarantee for the Series C Senior Notes, enhancing their creditworthiness.
  • 4The notes are registered under existing shelf registration statements filed by Southern Company and Funding.
  • 5An Underwriting Agreement was executed on November 8, 2005, with a syndicate of underwriters.
  • 6Exhibits include the Underwriting Agreement, a Third Supplemental Indenture, and a legal opinion.

Frequently Asked Questions

This 8-K filing announces an event related to Southern Company's financing activities, specifically the issuance of $250 million in Senior Notes by its subsidiary, Southern Company Capital Funding, Inc., which are guaranteed by the parent company.

The Series C Senior Notes have an aggregate principal amount of $250 million, a fixed interest rate of 5.75%, and a maturity date of November 15, 2015.

Southern Company's guarantee means that the parent company is directly responsible for the payment of principal and interest on these notes. This provides an additional layer of credit security for the noteholders, as they can look to Southern Company for repayment if the subsidiary were unable to meet its obligations.

Using a shelf registration statement allows Southern Company and its subsidiary to pre-register securities with the SEC. This enables them to quickly issue and sell these securities to the public when market conditions are favorable or when the company needs to raise capital, without having to file a new registration statement each time.