January 14, 2020. SOJD is finally trading today.
BUY SOJD at $25.32 or less…… This is an “investment grade” bond from a high quality Company. But note that it only pays a “low” 4.95% but we are ok with that due to the quality of Southern Co. Yes this position could pull back if we see declines in the market, but you can anticipate rather significant price appreciation in the long term. The bonds will probably move upward to over $26.
You don’t get opportunities like this very often. Yes the yield is lower than we would like and you have to decide if this is appropriate for you.
Southern Co. Series 2020A 4.95% Junior Subordinated Notes due 01/30/2080
Ticker Symbol: STHNP (The permanent symbol is SOJD)
CUSIP: 842587800 Exchange: TRACE. Security Type: Exchange-Traded Debt Security
|The 4.95% Junior Subordinated Notes were issued on 01/06/2020 and started trading temporarily on the Other OTC market 01/06/2020 under the ticker symbol STHNP until they start trading on the NYSE. The shares are expected to start trading on the NYSE within 30 days of their issue date under their permanent ticker symbol of (not yet known). For information on securities trading on the Other OTC, see our discussion on this subject on our What Income Investors Should Know page which can be found on our Information menu at the top of any page.|
|QUANTUMONLINE.COM SECURITY DESCRIPTION: Southern Company Series 2020A 4.95% Junior Subordinated Notes due January 30, 2080 issued in $25 denominations, redeemable at the issuer’s option on or after 01/30/2025 at $25 per note plus accrued and unpaid interest, and maturing 01/30/2080. Interest distributions of 4.95% per annum ($1.2375 per annum or $0.309375 per quarter) will be paid quarterly on 1/30, 4/30, 7/30 & 10/30 to holders of record on the record date that will be the business day immediately prior to the payment date if the Notes are in book-entry form or on the 15th calendar day prior to the payment date if the Notes are not in book-entry form (NOTE: the ex-dividend date is one business day prior to the record date).|
BUSINESS: Southern Co. is America’s premier energy company. The company provides clean, safe, reliable and affordable energy through electric utilities in four states, natural gas distribution utilities in seven states, a competitive generation company serving wholesale customers across America and a nationally recognized provider of customized energy solutions, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and affordable prices that are below the national average. Through an industry-leading commitment to innovation, the company and its subsidiaries are inventing America’s energy future by developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables and energy efficiency, and creating new products and services for the benefit of customers.