Deals this week: Southern Company, Baltimore Gas and Electric Company, and NRG Yield

18 August 2016 (Last Updated August 18th, 2016 18:30)

Southern Company has priced an underwritten public offering of 32.5 million shares of its common stock at $49.23 each to raise $1.6bn.

Southern Company has priced an underwritten public offering of 32.5 million shares of its common stock at $49.23 each to raise $1.6bn.

The offering is expected to close around 19 August 2016 and the generated proceeds are intended to partially fund a pending purchase of a 50% equity interest in Southern Natural Gas, invest in its subsidiaries including Southern Power, and for other general corporate purposes.

The joint book-running managers for the offering are Barclays Capital, Goldman, Sachs & Co, Morgan Stanley & Co, and Wells Fargo Securities, whereas Troutman Sanders is acting as legal advisor to Southern Company for the offering.

Baltimore Gas and Electric Company has priced a public offering of 3.5% senior notes due 15 August 2046 to raise $500m.

The notes are priced at 99.908% of the principal amount and the offering is expected to close on or about 18 August 2016. Interest on the notes will be paid semi-annually on 15 February and 15 August every year, commencing from 15 February 2017.

Proceeds from the offering will be used for general corporate purposes and to repay its outstanding long-term debt.

The joint book-running managers are Merrill Lynch, Pierce, Fenner & Smith Incorporated, MUFG Securities Americas, Wells Fargo Securities, PNC Capital Markets, and SMBC Nikko Securities America, whereas McKennon Shelton & Henn is acting as legal advisors.

NRG Yield’s subsidiary NRG Yield Operating has priced a private placement of 5% senior notes due 15 September 2026 to raise $350m.

The placement will be subscribed to by qualified institutional buyers and is expected to close on or about 18 August 2016.

Proceeds will be used to repay outstanding borrowings under the company’s revolving credit facility, for general corporate purposes, and for funding acquisitions and investments.

The legal advisor for the offering is Ballard Spahr.

PG&E Corporation has announced a public offering of 4.9 million shares of its common stock, priced at $63.25 each, to raise $309.93m.

The offering is expected to close around 19 August 2016 and the proceeds are intended to be used by its subsidiary Pacific Gas and Electric Company for general corporate purposes.

The underwriters for the offering are Morgan Stanley and BofA Merrill Lynch, whereas the legal advisor to PG&E Corporation is Orrick, Herrington & Sutcliffe.