Southern Company has priced the initial public offering of its subsidiary Southern Energy at $22 per share. The initial offering will issue 58 million shares of common stock, which is expected to raise $1.276 billion for Southern Energy. Southern Energy commenced trading on 27 September, 2000 on the New York Stock Exchange, as SOE.
At the same time, Southern Energy announced the pricing of a public offering of convertible trust preferred securities, which will yield 6.25% with an effective conversion price of $27.50 per share.The convertible trust preferred securities will trade under the symbol SOEPrA.
The gross proceeds to Southern Energy of the combined offerings are expected to be in the region of $1.506 billion.
Both offerings were led by Goldman Sachs and Morgan Stanley Dean Witter.