Alabama Power announces redemption of preferred stock

Rhea-AI Summary

On May 13, 2022, Alabama Power Company announced the redemption of several series of preferred stock with a redemption date set for June 21, 2022. The preferred stock includes 4.20%, 4.60%, 4.92%, 4.52%, 4.64%, and 4.72% series, each with a par value of $100. Redemption prices range from $102.18 to $105.00 per share, plus accrued dividends. The announcement highlights Alabama Power's commitment to managing its capital structure effectively. Shareholders should note that no dividends will accrue after the redemption date. Alabama Power is a subsidiary of Southern Company (NYSE: SO).

Positive

• Planned redemption of preferred stock indicates effective capital management.
• Redemption prices above par value ($100) could be seen positively by investors.

Negative

• No dividends will accrue after the redemption date, which could affect preferred shareholders.

BIRMINGHAM, Ala., May 13, 2022 /PRNewswire/ -- Alabama Power Company today announced that it issued a notice of redemption for the following series of preferred stock:

• 4.20% Preferred Stock, Par Value $100 Per Share CUSIP No. 010392207
• 4.60% Preferred Stock, Par Value $100 Per Share CUSIP No. 010392405
• 4.92% Preferred Stock, Par Value $100 Per Share CUSIP No. 010392702
• 4.52% Preferred Stock, Par Value $100 Per Share CUSIP No. 010392306
• 4.64% Preferred Stock, Par Value $100 Per Share CUSIP No. 010392504
• 4.72% Preferred Stock, Par Value $100 Per Share CUSIP No. 010392603

The redemption date for each of the above series of preferred stock will be June 21, 2022. The redemption price per share for each series of preferred stock to be redeemed shall be equal to $105.00 per share plus accrued and unpaid dividends to the redemption date for the 4.20% Preferred Stock; $104.20 per share plus accrued and unpaid dividends to the redemption date for the 4.60% Preferred Stock; $103.23 per share plus accrued and unpaid dividends to the redemption date for the 4.92% Preferred Stock; $102.93 per share plus accrued and unpaid dividends to the redemption date for the 4.52% Preferred Stock; $103.14 per share plus accrued and unpaid dividends to the redemption date for the 4.64% Preferred Stock and $102.18 per share plus accrued and unpaid dividends to the redemption date for the 4.72% Preferred Stock. No dividends on the preferred stock being redeemed will accrue on or after the redemption date, nor will any interest accrue on amounts held to pay the redemption price.

Questions relating to, and requests for copies of the notice of, this redemption should be directed to EQ Shareowner Services at 800-554-7626.

Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE: SO), provides reliable, affordable electricity to 1.5 million customers across the state. Learn more at www.alabamapower.com.

View original content:https://www.prnewswire.com/news-releases/alabama-power-announces-redemption-of-preferred-stock-301547315.html

SOURCE Alabama Power Company

FAQ

What preferred stock is being redeemed by Alabama Power on June 21, 2022?

Alabama Power is redeeming series including 4.20%, 4.60%, 4.92%, 4.52%, 4.64%, and 4.72% preferred stock.

What are the redemption prices for Alabama Power's preferred stock?

Redemption prices range from $102.18 to $105.00 per share, depending on the series.

When will Alabama Power stop paying dividends on the redeemed preferred stock?

Dividends will cease to accrue after the redemption date of June 21, 2022.

Which company owns Alabama Power?

Alabama Power is a subsidiary of Southern Company, traded under the ticker SO.