Southern Co. (NYSE: SO) entered into an equity distribution agreement on June 8, 2026, with 16 financial institutions serving as sales agents and forward purchasers, according to a company statement.

The agreement allows Southern Co. to sell shares of its common stock through the sales agents, who may act as agents or purchase shares as principals. Sales agents include Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities Inc., and others.

The company may also enter forward sale agreements with the same institutions or their affiliates. Under these arrangements, forward purchasers will attempt to borrow shares from third parties and sell them through sales agents to hedge the forward sale agreements.

The agreement includes two types of forward transactions. Initially priced forward transactions involve the company receiving proceeds upon future settlement, with the forward sale price adjusted based on overnight bank funding rates and expected dividends. Collared forward transactions establish floor and cap prices based on weighted average sale prices during an initial hedging period.

For standard sales, Southern Co. will pay commissions not exceeding 1.00% of the sales price per share. Similar commission rates apply to forward transactions, reflected in reduced forward sale prices.

Sales may be suspended at any time, and there is no assurance that forward sellers will be able to borrow shares from stock lenders. Only one sales agent or forward seller may conduct sales at any given time under the agreement.

The company specified that it will set minimum prices and trading parameters for share sales, including volume limitations during hedging periods.