Company: SOJE
Filing Date: 2025-11-04
Form Type: 424B2
Source: 0000092122-25-000092
Chunk: 53

Company: SOUTHERN CO
Filing Date: 2025-11-04
Form: 424B2
Chunk 53
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 Company’s Senior Indebtedness and the contract adjustment payments and the RSNs are effectively subordinated to any existing or future secured indebtedness of the Company and structurally subordinated to any existing or future preferred stock, indebtedness, guarantees and other liabilities of the Company’s subsidiaries.

The Company’s obligations under the contract adjustment payments are subordinated and junior in right of payment to all of the Company’s Senior Indebtedness. This means that the Company cannot make any contract adjustment payments until all holders of its Senior Indebtedness have been paid in full, or provision has been made for such payment, if such Senior Indebtedness is in default (subject to certain exceptions for grace periods and waivers). As of September 30, 2025, the Senior Indebtedness of the Company, on an unconsolidated basis, aggregated approximately $14.8 billion principal amount.

Since the Company is a holding company, the right of the Company and, hence, the right of creditors of the Company (including holders of the RSNs or purchase contracts) to participate in any distribution of the assets of any subsidiary of the Company, whether upon liquidation, reorganization or otherwise, is structurally subordinated to the claims of creditors and any preferred stockholders of each subsidiary. As of September 30, 2025, on a consolidated basis, the Company had approximately $72.6 billion principal amount of outstanding long-term debt (including securities due within one year), of which approximately $48.2 billion was long-term debt (including securities due within one year) of the Company’s subsidiaries. In addition, as of September 30, 2025, on a consolidated basis, the Company had approximately $0.1 billion principal amount of short-term notes payable, all of which was short-term notes payable of the Company’s subsidiaries. The RSNs and the Company’s obligations with respect to contract adjustments payments will be effectively subordinated to all secured indebtedness of the Company. The Company had no secured debt outstanding at September 30, 2025.

Recent and future regulatory actions and other events may adversely affect the trading price and liquidity of the Equity Units.

The Company expects that many investors in, and potential purchasers of, the Equity Units will employ, or seek to employ, an arbitrage strategy with respect to the Equity Units. Investors would typically implement such a strategy by selling short the common stock underlying the Equity Units and dynamically adjusting their short position while continuing to hold the Equity Units. Investors may also