Company: SOJE
Filing Date: 2025-02-26
Form Type: 424B2
Source: 0000092122-25-000026
Chunk: 32

Company: SOUTHERN CO
Filing Date: 2025-02-26
Form: 424B2
Chunk 32
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2025B Junior Subordinated Notes in excess of stated interest and treat as ordinary income, rather than as capital gain, any income realized on the taxable disposition of the Series 2025B Junior Subordinated Notes. In the event any such Excess Payments are made and vary from the estimated amounts, the United States Holder will be required to recognize appropriate adjustments to such accrued interest income.

If the Series 2025B Junior Subordinated Notes are deemed to be issued with OID at the time of issuance, or at a subsequent time by reason of an actual interest deferral, or are deemed to be contingent payment debt instruments, a beneficial owner’s tax basis in the Series 2025B Junior Subordinated Notes generally will be its initial purchase price (net of accrued interest paid upon purchase), increased by OID previously includible in that beneficial owner’s gross income to the date of disposition, and decreased by payments received by that beneficial owner on the Series 2025B Junior Subordinated Note since and including the date that the Series 2025B Junior Subordinated Notes were deemed to be issued with OID.

The Company believes that the Series 2025B Junior Subordinated Notes are variable rate debt instruments within the meaning of the applicable Treasury regulations regarding OID. Further, the Company intends that the initial interest rate and the interest rate on each Interest Reset Date for the Series 2025B Junior Subordinated Notes will be set in a manner that will satisfy the tests under those regulations to avoid the existence of OID upon issuance. Unless otherwise indicated, the remainder of this discussion assumes that the Series 2025B Junior Subordinated Notes are not treated as issued with OID and are not contingent payment debt instruments.

If a holder of Series 2025B Junior Subordinated Notes sells its Series 2025B Junior Subordinated Notes before the record date for a payment of interest after the commencement of an Optional Deferral Period, such holder will not receive such interest. Instead, the accrued interest will be paid to the holder of record on the record date regardless of who the holder of record may have been on any other date during the relevant accrual period. Moreover, the accrued OID will be added to such selling holder’s adjusted tax basis in the Series 2025B Junior Subordinated Notes but may not be reflected in the amount such holder realizes on the sale. To the extent the amount realized on a sale is less than a holder’s adjusted tax basis, the holder will recognize a capital loss for United States federal income tax purposes. The deductibility of capital losses is