Southern Energy trades above offering price


In a strong market for energy stocks, Southern Energy Inc. opened trading on the New York Stock Exchange Wednesday at $28�, up $6� over the $22/share offering price.

The shares of Southern Co.'s unregulated electric power subsidiary had been expected to be priced at between $18-20 each, up from an original range of $15-17.The stock began trading under the symbol SOE.

The initial offering of 58 million common shares, excluding the underwriters' overallotment options, is expected to provide $1.276 billion of gross proceeds to Southern Energy, Southern said. Following the offering, Atlanta-based Southern will continue to own about 80% of Southern Energy's stock.

Southern Energy also reported the pricing of a public offering of convertible trust preferred securities. The securities were priced to yield 6.25% with an effective conversion price of $27.50 per share. The gross proceeds to Southern Energy from the offering of the convertible trust preferred securities are expected to be about $300 million, excluding the purchasers' overallotment option, Southern said.

The convertible trust preferred securities will trade on the New York Stock Exchange under the symbol SOEPrA.

Southern said the net proceeds to Southern Energy of the combined offerings is expected to be about $1.506 billion, excluding the overallotment options.

Both offerings were jointly led by Goldman, Sachs & Co. and Morgan Stanley Dean Witter & Co.

Southern Energy, with total generating capacity of about 15,000 Mw and operations in 12 countries, develops, builds, owns and operates power production and delivery facilities and provides services to utilities and industrial companies around the world.

Market observers expect an independent Southern Energy to generate better returns and puts the company on a similar standing with firms such Enron Corp. and Dynegy Inc. in a deregulating energy market.

Related Articles

DOE approves LNG exports to non-FTA countries from Oregon project

03/24/2014 The US Department of Energy conditionally approved Jordan Cove Energy Project LP’s application to export LNG through its proposed terminal on Orego...

INGAA Foundation forecasts oil, gas infrastructure outlays to 2035

03/24/2014 An estimated $640.9 billion, or an average $29.1 billion/year, will need to be spent on US and Canadian midstream crude oil, natural gas, and natur...

Export short-sightedness

03/24/2014 Opposition by specific refiners to US exports of crude oil should surprise no one. The export ban suppresses the price of domestically produced lig...

HSC remains closed, fuel cleanup continues after barge collision

03/24/2014 The Houston Ship Channel (HSC) remained closed to unauthorized vessels Mar. 24 as the result of a temporary emergency safety zone being established...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected