Georgia Power Prices Public Offering of 2% Series 2017C Notes Due 2020 for USD500 Million

Published: Aug 03 2017
Deal Summary

Georgia Power Company, a power generation, transmission and distribution company and a subsidiary of Southern Company, has priced the public offering of 2% series 2017C senior notes due September 8, 2020, for gross proceeds of USD500 million. The notes will be issued at 99.966% of the principal amount and will yield 2.011% upon maturity. The company intends to receive net proceeds of approximately USD499.83 million.

Interest on the bonds will be paid semi-annually on March 8 and September 8 of each year, beginning March 8, 2018. The notes will be unsecured and unsubordinated obligations of the company, ranking equally with all of its other unsecured and unsubordinated indebtedness from time to time outstanding, and will be effectively subordinated to all its secured indebtedness.

The notes will be subject to redemption at the option of the company, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at redemption prices equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal of and interest on the notes being redeemed (not including any portion of such payments of interest accrued to the redemption date) discounted (for purposes of determining present value) to the redemption date on a semiannual basis (assuming a 360-day year consisting of 12 30-day months) at a discount rate equal to the treasury yield plus 10 basis points, plus, in each case, accrued and unpaid interest on the notes being redeemed to the redemption date.

Barclays Capital Inc., MUFG Securities Americas Inc., and Scotia Capital (USA) Inc. are acting as joint book-running managers, Commerz Markets LLC, BB&T Capital Markets, a division of BB&T Securities, LLC, TD Securities (USA) LLC, Academy Securities, Inc., C.L. King & Associates, Inc., and The Williams Capital Group, L.P. are acting as co-managers, while Troutman Sanders LLP is acting as legal advisor to the company for the offering.

The company intends to use the proceeds to repay all or a portion of its USD50 million floating rate bank loan and outstanding commercial paper borrowings, which aggregated approximately USD145 million as of August 2, 2017, and any remaining net proceeds will be used for general corporate purposes.

Deal History:

Filing: On February 26, 2016, Georgia Power filed a registration statement with the US Securities and Exchange Commission to issue may sell, in one or more transactions, shares of class A preferred stock, shares of preference stock, depositary preference shares, each representing a fraction of a share of preference stock, senior notes, or junior subordinated notes.

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