Southern Co Raises $2.73 Billion via Convertible Notes
Claim 55% Off TipRanks
- Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions
- Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks
Southern Co ( (SO) ) has provided an update.
On August 6, 2026, Southern Company raised approximately $2.73 billion by issuing two series of unsecured convertible senior notes, consisting of $833.75 million of 2.125% notes due December 15, 2027 and $1.90 billion of 3.50% notes due September 15, 2029, including amounts issued through over-allotment options. The notes, which rank pari passu with the utility’s other unsecured debt, feature specified stock price and trading conditions for early conversion, provide for cash and/or share settlement at the company’s election, and were sold in a private Rule 144A offering that could ultimately result in the issuance of up to roughly 29.4 million shares, highlighting a significant new financing that may dilute existing shareholders over time while strengthening the company’s capital structure.
The Series 2026A notes carry an initial conversion rate of 9.5641 shares per $1,000 and the Series 2026B notes 8.4389 shares, with higher maximum rates applying in certain fundamental change scenarios. Holders in both tranches gain conversion and put rights upon defined stock price thresholds, trading conditions or corporate events, while the company is obligated to repurchase the notes at par plus accrued interest upon a qualifying fundamental change and faces accelerated repayment if an event of default is declared, shaping future balance sheet flexibility and investor risk dynamics.
The most recent analyst rating on (SO) stock is a Buy
with a $106.00 price target.
To see the full list of analyst forecasts on Southern Co stock,
see the SO Stock Forecast page.
Spark’s Take on SO Stock
According to Spark, TipRanks’ AI Analyst, SO is a Neutral.
The score is anchored by mixed financial performance: strong regulated profitability is tempered by high leverage and uneven free-cash-flow conversion. The earnings call meaningfully supports the outlook through reaffirmed top-end guidance and accelerating contracted load growth, but near-term technical signals remain weak and valuation is only moderately supportive given a mid-range P/E and a solid dividend yield.
To see Spark’s full report on SO stock,
click here.
More about Southern Co
The Southern Company is a major U.S. electric and gas utility holding company, providing regulated electricity generation, transmission and distribution as well as natural gas distribution across several states. The company focuses on serving retail and wholesale energy customers, financing large-scale infrastructure projects and accessing capital markets through a mix of debt and equity-linked securities.
Average Trading Volume: 5,763,713
Technical Sentiment Signal: Strong Buy
Current Market Cap: $108.8B
For a thorough assessment of SO stock, go to TipRanks’ Stock Analysis page.
