Southern Co Upsizes $1.45B Convertible Notes Offering

An announcement from Southern Co ( (SO) ) is now available.

On May 20, 2025, Southern Company announced the upsize and pricing of a $1.45 billion offering of its Series 2025A 3.25% Convertible Senior Notes, due June 15, 2028, in a private placement to qualified institutional buyers. The offering, which was increased by $200 million from the previously announced size, is expected to close on May 23, 2025. The company plans to use approximately $1.25 billion of the net proceeds to repurchase existing convertible senior notes and the remainder for general corporate purposes. This move is part of Southern Company’s strategy to manage its debt portfolio and optimize its capital structure, potentially impacting its stock market dynamics and stakeholder interests.

The most recent analyst rating on (SO) stock is a Buy with a $96.00 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.

Southern Co’s overall stock score reflects strong financial performance and a positive earnings outlook, with challenges in cash flow management and technical resistance. The company’s stable valuation and attractive dividend yield support the score, while high leverage and potential cost increases due to tariffs are key risks.

To see Spark’s full report on SO stock, click here.

More about Southern Co

Southern Company is a leading energy provider serving 9 million customers across the Southeast and beyond. The company operates electric companies in three states, natural gas distribution companies in four states, and has a competitive generation company, a leading distributed energy distribution company with national capabilities, as well as a fiber optics network and telecommunications services.

Average Trading Volume: 5,018,720

Technical Sentiment Signal: Buy

Current Market Cap: $98.34B

For an in-depth examination of SO stock, go to TipRanks’ Stock Analysis page.