Alabama Power Prices Public offering of Preferred Shares for USD250 Million

Published: Sep 05 2017
Deal Summary

Alabama Power Company, an electric utility company, has priced the public offering of 10,000,000 5% cumulative class A preferred shares, at a price of USD25 per share, for gross proceeds of USD250 million. Dividends on the new class A preferred stock will be cumulative from the date of issuance and are payable quarterly on January 1, April 1, July 1 and October 1 of each year, beginning October 1, 2017.

The preferred shares are callable for optional redemption in whole or in part, from time to time, on or after October 1, 2022, at USD25 per share, plus accrued and unpaid dividends to but excluding the redemption date.

J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co.LLC and Wells Fargo Securities, LLC are acting as joint book-running managers, Scotia Capital (USA) Inc. is acting as senior co-manager; BB&T Capital Markets, a division of BB&T Securities, LLC, BBVA Securities Inc., Drexel Hamilton, LLC, Mischler Financial Group, Inc. and Regions Securities LLC are acting as co managers, while Balch & Bingham LLP, Troutman Sanders LLP and Hunton & Williams LLP are acting as legal advisors to the company for the offering.

The company intends to use the net proceeds for its ongoing construction program, to pay scheduled maturities and/or refunding of its securities, to repay short-term indebtedness to the extent outstanding and for other general corporate purposes.

The offering is expected to be completed on September 8, 2017.

Deal History:

Filing: On February 24, 2017, Alabama Power filed registration statement with the US Securities and Exchange Commission for time to time public offering of securities, consisting of class A preferred stock cumulative, preference stock, senior notes and junior subordinated notes.

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