Alabama Power Company – an affiliate of the electric utility firm Southern Company SO – announced a senior notes offering.
The Southern Company unit offered additional 2015A series Senior Notes, carrying an interest rate of 3.75% and due to mature on Mar 1, 2045. It had previously offered notes of this series worth $500 million on Mar 11. The affiliate company also announced a new series of senior notes named Series 2015B.
Alabama Power added that it plans to use the net proceeds from these offerings to redeem its 5.20% Class A Preferred Stock, 5.30% Class A Preferred Stock and 5.625% Preference Stock. The aggregate price for these redemptions is likely to be around $412 million, plus unpaid and accrued dividend as of redemption date.
The subsidiary also plans to use the remaining funds, if any, for its construction program and for general corporate purposes.
Alabama Power is engaged in the generation and purchase of electricity and the transmission, distribution, and sale of such electricity to more than 1.4 million homes, businesses and industries across the state.
Headquartered in Atlanta, GA, Southern Company is one of the largest generators of electricity in the nation, serving both regulated and competitive markets across the southeastern U.S. It is a holding company for four regulated Southern electric utilities that serve about 4.4 million customers – Georgia Power, Alabama Power, Gulf Power, and Mississippi Power.
Currently, Southern Company carries a Zacks Rank #3 (Hold).
Better-ranked players from the Utilities-Electric Power industry include DTE Energy Company DTE, Public Service Enterprise Group Inc. PEG and NextEra Energy, Inc. NEE. All these stocks hold a Zacks Rank #2 (Buy).
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