The Southern Company has announced an adjustment to the Conversion Rate for its Series 2023A 3.875% Convertible Senior Notes due December 15, 2025. This adjustment, made pursuant to Sections 2.05(d) and 2.05(i) of the Supplemental Indenture, has resulted in a new Conversion Rate of 11.9035 shares of Common Stock per $1,000 principal amount of the Series 2023A Notes, effective September 15, 2025.
The adjustment was triggered by the declaration of six regular quarterly cash dividends by The Southern Company, each in excess of the Distribution Threshold of $0.70 per share of Common Stock. Despite these dividend payments, no previous adjustments were made to the Conversion Rate, as each adjustment would have resulted in an increase of less than one percent. Per Section 2.05(i) of the Supplemental Indenture, all previously deferred adjustments are required to be made on September 15, 2025, leading to the announced adjustment.
This adjustment marks a change from the previous Conversion Rate and is a notable development for holders of the Series 2023A Notes, as it impacts the conversion of these notes into Common Stock. The market has reacted to these announcements by moving the company's shares 0.15% to a price of $92.27. If you want to know more, read the company's complete 8-K report here.
