QUANTUMONLINE.COM SECURITY DESCRIPTION: Southern Co., 5.25% Series 2017B Junior Subordinated Notes due 12/1/2077, issued in $25 denominations, redeemable at the issuer's option on or after 12/1/2022 at $25 per note plus accrued and unpaid interest, and maturing 12/1/2077. Interest distributions of 5.25% per annum ($1.3125 per annum or $0.328125 per quarter) will be paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on the record date that will be the business day immediately prior to the payment date if the Notes are in book-entry form or on the 15th calendar day prior to the payment date if the Notes are not in book-entry form (NOTE: the ex-dividend date is at least one business day prior to the record date). The issuer may defer interest payments on the Junior Subordinated Notes on one or more occasions for up to 40 consecutive quarterly periods. Deferred interest payments will accrue additional interest (see prospectus for further information). Before 12/1/2022, the Company may redeem, upon a redemption notice, in whole but not in part, the Junior Subordinated Notes following the occurrence of a Tax Event (see prospectus for further details).
Before 12/1/2022, the Company may redeem the Notes following the occurrence of a Rating Agency Event at 102% of their principal amount plus any accrued and unpaid interest (see prospectus for further details).
Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. This security was rated as Baa3 by Moody’s and BBB by S&P at the date of its IPO. The Notes are unsecured and subordinated obligations of the company and will rank equally with all existing and future unsecured and subordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
