Company: SOJE
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0000092122-25-000088
Chunk: 143

Company: SOUTHERN CO
Filing Date: 2025-11-03
Form: 424B5
Chunk 143
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 principal amount. The remainder of this discussion assumes that the RSNs will be treated in the manner described above.

There are, however, no United States Treasury regulations, rulings or other authorities that address the United States federal income tax treatment of debt instruments that are substantially similar to the RSNs, and therefore the United States federal income tax treatment of the RSNs is unclear and other alternative characterizations are possible. For example, it is possible that the RSNs could be treated as “contingent payment debt instruments” for United States federal income tax purposes. In that event, a United States Holder would generally be required, among other things, to (1) accrue interest income based on a projected payment schedule and comparable yield, which may be a higher rate than the stated interest rate on the RSNs, regardless of such United States Holder’s regular method of tax accounting, and (2) treat as ordinary income, rather than capital gain, any gain recognized on a sale, exchange, redemption or other taxable disposition of an RSN.

#### Interest Income
The stated interest payments on the RSNs (“qualified stated interest”) generally will be taxable to a United States Holder as ordinary income at the time paid or accrued in accordance with such holder’s method of accounting for United States federal income tax purposes.

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Tax Basis in Applicable Ownership Interests in the RSNs

A United States Holder’s initial tax basis in an applicable ownership interest in an RSN will equal the portion of the purchase price for the Equity Unit allocated to such RSN as described under “—Equity Units—Allocation of Purchase Price” above.

Sale, Exchange, Remarketing or Other Taxable Disposition of Applicable Ownership Interests in the RSNs

Upon a sale, exchange or other taxable disposition of an applicable ownership interest in an RSN (including a redemption for cash or upon the remarketing of the RSNs) (collectively, a “disposition”), a United States Holder will recognize gain or loss in an amount equal to the difference between the amount realized by such United States Holder on such disposition of the RSN and such United States Holder’s adjusted tax basis in the applicable ownership interest in the RSN, except to the extent such United States Holder is treated as receiving accrued but unpaid interest, which is taxable as ordinary interest income if not previously included in such United States Holder’s income. Any such gain or loss generally will be capital gain or loss, and will be