ATLANTA – Southern Company (NYSE: SO) today announced the pricing of its equity offering. The offering of 25 million shares of common stock (not including the underwriters` overallotment option) was priced at $28.50 per share, which is expected to provide $712.5 million of gross proceeds to Southern Company. Initially, the offering was sized at 20 million shares, but because of investor demand, the company decided to increase the size of the offering.
“The proceeds from the sale of these securities will be used to invest in our competitive wholesale generating business and our regulated business in the Southeast as well as to reduce debt,” said Southern Company Chairman and Chief Executive Officer A.W. “Bill” Dahlberg.
Net proceeds to Southern Company of the offering are expected to be approximately $689.5 million (not including the overallotment option).
The offering was led by Goldman, Sachs & Co. A copy of the final prospectus for the offering may be obtained from the offices of Goldman, Sachs & Co, 85 Broad Street, New York, N.Y. 10004.
Southern Company (NYSE: SO), the largest producer of electricity in the United States, is also the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction.
Forward-looking Statements
Note: Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the timing of the offering. Although Southern Company believes that this forward-looking information is accurate, its business is dependent on various regulatory issues, general economic conditions and future trends, and these factors can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company.
The following factors, in addition to those discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 1999, and subsequent securities filings, could cause results to differ materially from management expectations as suggested by such forward-looking information: the impact of recent and future federal and state regulatory change, including legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry and also changes in environmental and other laws and regulations to which Southern Company and its subsidiaries are subject, as well as changes in application of existing such laws; current and future litigation, including the EPA civil action against Georgia Power and potentially other of our subsidiaries, and litigation related to wholesale prices of electricity in California, and the diversity litigation against certain of our subsidiaries; the effects of increased competition in the markets in which Southern Company’s subsidiaries operate; the impact of fluctuations in commodity prices, interest rates and customer demand; internal restructuring or other restructuring options that may be pursued; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to the company; the effects of, and changes in, economic conditions in the areas in which Southern Company’s subsidiaries operate; financial market conditions and the results of financing efforts; the timing and acceptance of the company’s new product and service offerings; the ability of Southern Company to obtain additional generating capacity at competitive prices; weather and other natural phenomena; and the ability of Southern Company to meet the conditions for the spin off of Southern Energy, which include regulatory and other approvals.