Filed Pursuant to Rule 424(b)(5)
Registration Nos. 333-110950
333-110950-01
333-110950-02
333-110950-03
PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED DECEMBER 19, 2003)
$200,000,000
(ALABAMA POWER LOGO)
SERIES Z 5.125% SENIOR NOTES DUE FEBRUARY 15, 2019
------------------------
Interest payable on February 15 and August 15
------------------------
This is a public offering by Alabama Power Company of $200,000,000 of its
Series Z 5.125% Senior Notes due February 15, 2019.
Alabama Power Company may redeem the Series Z Senior Notes, in whole or in
part, at any time, at a make-whole redemption price, as described herein
beginning on page S-5.
------------------------
See "RISK FACTORS" on page S-3 for a description of certain risks
associated with investing in the Series Z Senior Notes.
The Series Z Senior Notes should be delivered on or about February 17, 2004
through the book-entry facilities of The Depository Trust Company.
PER SERIES Z
SENIOR NOTE TOTAL
------------ -------------
Public Offering Price....................................... 99.535 % $199,070,000
Underwriting Discount....................................... 0.750 % $ 1,500,000
Proceeds to Alabama Power Company........................... 98.785 % $197,570,000
------------------------
Neither the Securities and Exchange Commission nor any other regulatory
body has approved or disapproved of these securities or passed upon the accuracy
or adequacy of this Prospectus Supplement or the accompanying Prospectus. Any
representation to the contrary is a criminal offense.
------------------------
Joint Book-Running Managers
BARCLAYS CAPITAL WACHOVIA SECURITIES
------------------------
Co-Managers
BLAYLOCK & PARTNERS, L.P. THE WILLIAMS CAPITAL GROUP, L.P.
February 10, 2004
In making your investment decision, you should rely only on the information
contained or incorporated by reference in this Prospectus Supplement and the
attached Prospectus. We have not authorized anyone to provide you with any other
information. If you receive any unauthorized information, you must not rely on
it.
We are offering to sell the Series Z Senior Notes only in places where
sales are permitted.
You should not assume that the information contained or incorporated by
reference in this Prospectus Supplement or the attached Prospectus, including
information incorporated by reference, is accurate as of any date other than its
respective date.
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TABLE OF CONTENTS
PAGE
----
PROSPECTUS SUPPLEMENT
Risk Factors S-3
The Company S-3
Selected Financial Information S-3
Recent Results of Operations S-4
Use of Proceeds S-4
Description of the Series Z Senior
Notes S-5
Underwriting S-9
PAGE
----
PROSPECTUS
About this Prospectus 2
Risk Factors 2
Available Information 2
Incorporation of Certain Documents by
Reference 3
Selected Information 4
Alabama Power Company 4
The Trusts 5
Use of Proceeds 6
Description of the New Bonds 6
Description of the New Stock 9
Description of the Senior Notes 11
Description of the Junior Subordinated
Notes 14
Description of the Preferred
Securities 20
Description of the Guarantees 20
Relationship Among the Preferred
Securities, the Junior Subordinated
Notes and the Guarantees 23
Plan of Distribution 24
Legal Matters 25
Experts 25
S-2
RISK FACTORS
Investing in the Series Z Senior Notes involves risk. Please see the risk
factors in Alabama Power Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2002, which is incorporated by reference in this
Prospectus Supplement. Before making an investment decision, you should
carefully consider these risks as well as other information contained or
incorporated by reference in this Prospectus Supplement and the accompanying
Prospectus. The risks and uncertainties not presently known to Alabama Power
Company or that Alabama Power Company currently deems immaterial may also impair
its business operations, its financial results and the value of the Series Z
Senior Notes.
THE COMPANY
Alabama Power Company (the "Company") is a corporation organized under the
laws of the State of Alabama on November 10, 1927, by the consolidation of a
predecessor Alabama Power Company, Gulf Electric Company and Houston Power
Company. The Company has its principal office at 600 North 18th Street,
Birmingham, Alabama 35291, telephone (205) 257-1000. The Company is a wholly
owned subsidiary of The Southern Company ("Southern").
The Company is a regulated public utility engaged in the generation,
transmission, distribution and sale of electric energy within an approximately
44,500 square mile service area comprising most of the State of Alabama.
SELECTED FINANCIAL INFORMATION
The following selected financial data for the years ended December 31, 1998
through December 31, 2002 has been derived from the Company's audited financial
statements and related notes, incorporated by reference in this Prospectus
Supplement and the accompanying Prospectus. The following selected financial
data for the nine months ended September 30, 2003 has been derived from the
Company's unaudited financial statements and related notes, incorporated by
reference in this Prospectus Supplement and the accompanying Prospectus. The
information set forth below is qualified in its entirety by reference to and,
therefore, should be read together with management's discussion and analysis of
results of operations and financial condition, the financial statements and
related notes and other financial information incorporated by reference in this
Prospectus Supplement and the accompanying Prospectus.
NINE
MONTHS
YEAR ENDED DECEMBER 31, ENDED
------------------------------------------ SEPTEMBER 30,
1998 1999 2000 2001 2002 2003(1)
------ ------ ------ ------ ------ -------------
(MILLIONS, EXCEPT RATIOS)
Operating Revenues........................ $3,386 $3,385 $3,667 $3,586 $3,711 $3,056
Earnings Before Income Taxes.............. 610 658 698 650 768 679
Net Income After Dividends on Preferred
Stock................................... 377 400 420 387 461 415
Ratio of Earnings to Fixed Charges(2)..... 3.12 3.59 3.46 3.31 3.98 4.75
S-3
CAPITALIZATION
AS OF SEPTEMBER 30, 2003
-------------------------------
ACTUAL AS ADJUSTED(3)
------ ----------------------
(MILLIONS, EXCEPT PERCENTAGES)
Common Stock Equity......................................... $3,507 $3,552 45.0%
Cumulative Preferred Stock.................................. 373 473 6.0
Shares Subject to Mandatory Redemption...................... 300 300 3.8
Senior Notes................................................ 2,475 3,025 38.4
Other Long-Term Debt........................................ 537 537 6.8
------ ------ -----
Total, excluding amounts due within one year of $1,032
million................................................ $7,192 $7,887 100.0%
====== ====== =====
---------------
(1) Due to seasonal variations in the demand for energy, operating results for
the nine months ended September 30, 2003 do not necessarily indicate
operating results for the entire year.
(2) This ratio is computed as follows: (i) "Earnings" have been calculated by
adding to "Earnings Before Income Taxes" "Interest expense, net of amounts
capitalized," "Distributions on shares subject to mandatory redemption" and
the debt portion of allowance for funds used during construction; and (ii)
"Fixed Charges" consist of "Interest expense, net of amounts capitalized,"
"Distributions on shares subject to mandatory redemption" and the debt
portion of allowance for funds used during construction.
(3) Reflects: (i) the issuance in November 2003 of $350,000,000 aggregate
principal amount of Series Y 2.80% Senior Notes due December 1, 2006; (ii)
the issuance in December 2003 of 625,000 shares of common stock to Southern
at $40.00 per share; (iii) the proposed issuance in February 2004 of 500,000
shares of common stock to Southern at $40.00 per share; (iv) the proposed
issuance in February 2004 of 4,000,000 shares ($100,000,000 aggregate stated
capital) of 5.30% Class A Preferred Stock, Cumulative, Par Value $1 Per
Share (Stated Capital $25 Per Share) and (v) the issuance of the Series Z
Senior Notes.
RECENT RESULTS OF OPERATIONS
For the year ended December 31, 2003, the unaudited amounts of "Operating
Revenues," "Earnings Before Income Taxes" and "Net Income After Dividends on
Preferred Stock" were $3,968,165,000, $781,455,000 and $472,810,000,
respectively. In the opinion of management of the Company, the above amounts for
the year ended December 31, 2003 reflect all adjustments necessary to present
fairly the results of operations for such period. The "Ratio of Earnings to
Fixed Charges" for the year ended December 31, 2003 was 4.29.
USE OF PROCEEDS
The proceeds from the sale of the Series Z Senior Notes will be used by the
Company for general corporate purposes, including the Company's continuous
construction program. The Company's current estimate of construction costs for
2004 is approximately $791,000,000 and for 2005 is approximately $863,000,000.
S-4
DESCRIPTION OF THE SERIES Z SENIOR NOTES
Set forth below is a description of the specific terms of the Series Z
5.125% Senior Notes due February 15, 2019 (the "Series Z Senior Notes"). This
description supplements, and should be read together with, the description of
the general terms and provisions of the senior notes set forth in the
accompanying Prospectus under the caption "Description of the Senior Notes." The
following description does not purport to be complete and is subject to, and is
qualified in its entirety by reference to, the description in the accompanying
Prospectus and the Senior Note Indenture (the "Senior Note Indenture") dated as
of December 1, 1997, as supplemented, between the Company and JPMorgan Chase
Bank (formerly known as The Chase Manhattan Bank), as trustee (the "Senior Note
Indenture Trustee").
GENERAL
The Series Z Senior Notes will be issued as a series of senior notes under
the Senior Note Indenture. The Series Z Senior Notes will be initially issued in
the aggregate principal amount of $200,000,000. The Company may, without the
consent of the holders of the Series Z Senior Notes, issue additional notes
having the same ranking and interest rate, maturity and other terms (except for
the issue price and issue date) as the Series Z Senior Notes. Any additional
notes having such similar terms, together with the Series Z Senior Notes, will
constitute a single series of senior notes under the Senior Note Indenture.
The entire principal amount of the Series Z Senior Notes will mature and
become due and payable, together with any accrued and unpaid interest thereon,
on February 15, 2019. The Series Z Senior Notes are not subject to any sinking
fund provision. The Series Z Senior Notes are available for purchase in
denominations of $1,000 and any integral multiple thereof.
INTEREST
Each Series Z Senior Note shall bear interest at the rate of 5.125% per
annum (the "Securities Rate") from the date of original issuance, payable
semiannually in arrears on February 15 and August 15 of each year (each, an
"Interest Payment Date") to the person in whose name such Series Z Senior Note
is registered at the close of business on the fifteenth calendar day prior to
such payment date (whether or not a Business Day). The initial Interest Payment
Date is August 15, 2004. The amount of interest payable will be computed on the
basis of a 360-day year of twelve 30-day months. In the event that any date on
which interest is payable on the Series Z Senior Notes is not a Business Day,
then payment of the interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay), with the same force and effect as if made
on such date. "Business Day" means a day other than (i) a Saturday or Sunday,
(ii) a day on which banks in New York, New York are authorized or obligated by
law or executive order to remain closed or (iii) a day on which the Senior Note
Indenture Trustee's corporate trust office is closed for business.
RANKING
The Series Z Senior Notes will be direct, unsecured and unsubordinated
obligations of the Company and will rank equally with all other unsecured and
unsubordinated obligations of the Company. The Series Z Senior Notes will be
effectively subordinated to all secured debt of the Company, including its first
mortgage bonds, aggregating approximately $302,000,000 outstanding at September
30, 2003. The Senior Note Indenture contains no restrictions on the amount of
additional indebtedness that may be incurred by the Company.
OPTIONAL REDEMPTION
The Series Z Senior Notes will be subject to redemption at the option of
the Company in whole or in part at any time upon not less than 30 nor more than
60 days' notice, at redemption prices (each, a "Redemption Price") equal to the
greater of (i) 100% of the principal amount of the Series Z Senior Notes being
redeemed or (ii) the sum of the present values of the remaining scheduled
payments of principal of and interest on the Series Z Senior Notes being
redeemed discounted to the date of redemption on a semiannual basis (assuming
S-5
a 360-day year consisting of twelve 30-day months) at a discount rate equal to
the Treasury Yield plus 20 basis points, plus, for (i) and (ii) above, whichever
is applicable, accrued interest on the Series Z Senior Notes to the date of
redemption.
"Treasury Yield" means, with respect to any redemption date, the rate per
amount equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.
"Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Series Z Senior Notes to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Series Z Senior Notes.
"Comparable Treasury Price" means with respect to any redemption date, (i)
the average of the bid and asked price for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
Business Day in New York City preceding such redemption date, as set forth in
the daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated "H.15(519)" or (ii) if such
release (or any successor release) is not published or does not contain such
prices on such Business Day, the Reference Treasury Dealer Quotation for such
redemption date.
"Independent Investment Banker" means an independent investment banking
institution of national standing appointed by the Company and reasonably
acceptable to the Senior Note Indenture Trustee.
"Reference Treasury Dealer" means a primary U.S. Government securities
dealer in New York City appointed by the Company and reasonably acceptable to
the Senior Note Indenture Trustee.
"Reference Treasury Dealer Quotation" means, with respect to the Reference
Treasury Dealer and any redemption date, the average, as determined by the
Senior Note Indenture Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount
and quoted in writing to the Senior Note Indenture Trustee by such Reference
Treasury Dealer at 5:00 p.m. on the third Business Day in New York City
preceding such redemption date).
If notice of redemption is given as aforesaid, the Series Z Senior Notes so
to be redeemed shall, on the date of redemption, become due and payable at the
applicable Redemption Price together with any accrued interest thereon and from
and after such date (unless the Company shall default in the payment of the
applicable Redemption Price and accrued interest) such Series Z Senior Notes
shall cease to bear interest. If any Series Z Senior Notes called for redemption
shall not be paid upon surrender thereof for redemption, the principal shall,
until paid, bear interest from the date of redemption at the Securities Rate.
See "Description of the Senior Notes -- Events of Default" in the accompanying
Prospectus.
Subject to the foregoing and to applicable law (including, without
limitation, United States federal securities laws), the Company or its
affiliates may, at any time and from time to time, purchase outstanding Series Z
Senior Notes by tender, in the open market or by private agreement.
BOOK-ENTRY ONLY ISSUANCE -- THE DEPOSITORY TRUST COMPANY
The Depository Trust Company ("DTC") will act as the initial securities
depository for the Series Z Senior Notes. The Series Z Senior Notes will be
issued only as fully registered securities registered in the name of Cede & Co.,
DTC's nominee or such other name as may be requested by an authorized
representative of DTC. One or more fully registered global Series Z Senior Notes
certificates will be issued, representing in the aggregate the total principal
amount of the Series Z Senior Notes, and will be deposited with the Senior Note
Indenture Trustee on behalf of DTC.
DTC is a limited-purpose trust company organized under the New York Banking
Law, a "banking organization" within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code and a "clearing
S-6
agency" registered pursuant to the provisions of Section 17A of the Securities
Exchange Act of 1934, as amended. DTC holds and provides asset servicing for
over 2 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues and money market instruments from over 85 countries that
DTC's participants ("Direct Participants") deposit with DTC. DTC also
facilitates the post-trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic
computerized book-entry transfers and pledges between Direct Participants'
accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, clearing corporations and certain
other organizations. DTC is a wholly-owned subsidiary of The Depository Trust &
Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct
Participants of DTC and members of the National Securities Clearing Corporation,
Government Securities Clearing Corporation, MBS Clearing Corporation and
Emerging Markets Clearing Corporation (NSCC, GSCC, MBSCC and EMCC, also
subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the
American Stock Exchange LLC and the National Association of Securities Dealers,
Inc. Access to the DTC system is also available to others such as both U.S. and
non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a
Direct Participant, either directly or indirectly ("Indirect Participants"). The
DTC rules applicable to its Direct and Indirect Participants are on file with
the Securities and Exchange Commission. More information about DTC can be found
at www.dtcc.com.
Purchases of Series Z Senior Notes under the DTC system must be made by or
through Direct Participants, which will receive a credit for the Series Z Senior
Notes on DTC's records. The ownership interest of each actual purchaser of
Series Z Senior Notes ("Beneficial Owner") is in turn to be recorded on the
Direct and Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchases, but Beneficial Owners are
expected to receive written confirmations providing details of the transactions,
as well as periodic statements of their holdings, from the Direct or Indirect
Participants through which the Beneficial Owners purchased Series Z Senior
Notes. Transfers of ownership interests in the Series Z Senior Notes are to be
accomplished by entries made on the books of Direct and Indirect Participants
acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in Series Z Senior Notes,
except in the event that use of the book-entry system for the Series Z Senior
Notes is discontinued.
To facilitate subsequent transfers, all Series Z Senior Notes deposited by
Direct Participants with DTC are registered in the name of DTC's partnership
nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Series Z Senior Notes with DTC and their
registration in the name of Cede & Co. or such other DTC nominee do not effect
any changes in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Series Z Senior Notes. DTC's records reflect only the
identity of the Direct Participants to whose accounts such Series Z Senior Notes
are credited, which may or may not be the Beneficial Owners. The Direct and
Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Redemption notices shall be sent to DTC. If less than all of the Series Z
Senior Notes are being redeemed, DTC's practice is to determine by lot the
amount of interest of each Direct Participant in such Series Z Senior Notes to
be redeemed.
Conveyance of notices and other communications by DTC to Direct
Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as
may be in effect from time to time.
Although voting with respect to the Series Z Senior Notes is limited, in
those cases where a vote is required, neither DTC nor Cede & Co. (nor any other
DTC nominee) will consent or vote with respect to Series Z Senior Notes. Under
its usual procedures, DTC mails an Omnibus Proxy to the Company as soon as
possible after the record date. The Omnibus Proxy assigns Cede & Co.'s
consenting or voting rights to those Direct Participants to whose accounts the
Series Z Senior Notes are credited on the record date (identified in a listing
attached to the Omnibus Proxy).
S-7
Payments on the Series Z Senior Notes will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's
practice is to credit Direct Participants' accounts upon DTC's receipt of funds
and corresponding detail information from the Company or the Senior Note
Indenture Trustee on the relevant payment date in accordance with their
respective holdings shown on DTC's records. Payments by Direct or Indirect
Participants to Beneficial Owners will be governed by standing instructions and
customary practices, as is the case with securities held for the account of
customers registered in "street name," and will be the responsibility of such
Direct or Indirect Participant and not of DTC or the Company, subject to any
statutory or regulatory requirements as may be in effect from time to time.
Payment to Cede & Co. (or such other nominee as may be requested by an
authorized representative of DTC) is the responsibility of the Company,
disbursement of such payments to Direct Participants is the responsibility of
DTC, and disbursement of such payments to the Beneficial Owners is the
responsibility of Direct and Indirect Participants.
Except as provided herein, a Beneficial Owner of a global Series Z Senior
Note will not be entitled to receive physical delivery of Series Z Senior Notes.
Accordingly, each Beneficial Owner must rely on the procedures of DTC to
exercise any rights under the Series Z Senior Notes. The laws of some
jurisdictions require that certain purchasers of securities take physical
delivery of securities in definitive form. Such laws may impair the ability to
transfer beneficial interests in a global Series Z Senior Note.
DTC may discontinue providing its services as securities depository with
respect to the Series Z Senior Notes at any time by giving reasonable notice to
the Company. Under such circumstances, in the event that a successor securities
depository is not obtained, Series Z Senior Notes certificates will be printed
and delivered to the holders of record. Additionally, the Company may decide to
discontinue use of the system of book-entry transfers through DTC (or a
successor depository) with respect to the Series Z Senior Notes. In that event,
certificates for the Series Z Senior Notes will be printed and delivered to the
holders of record.
The information in this section concerning DTC and DTC's book-entry system
has been obtained from sources that the Company believes to be reliable, but the
Company takes no responsibility for the accuracy thereof. The Company has no
responsibility for the performance by DTC or its Direct or Indirect Participants
of their respective obligations as described herein or under the rules and
procedures governing their respective operations.
S-8
UNDERWRITING
Subject to the terms and conditions of an underwriting agreement (the
"Underwriting Agreement"), the Company has agreed to sell to the underwriters
named below (the "Underwriters") and each of the Underwriters has severally
agreed to purchase from the Company the principal amount of the Series Z Senior
Notes set forth opposite its name below:
PRINCIPAL AMOUNT OF
SERIES Z SENIOR
NAME NOTES
---- -------------------
Barclays Capital Inc. ...................................... $ 90,000,000
Wachovia Capital Markets, LLC .............................. 90,000,000
Blaylock & Partners, L.P. .................................. 10,000,000
The Williams Capital Group, L.P. ........................... 10,000,000
------------
Total............................................. $200,000,000
============
In the Underwriting Agreement, the Underwriters have agreed, subject to the
terms and conditions set forth therein, to purchase all of the Series Z Senior
Notes offered hereby, if any of the Series Z Senior Notes are purchased.
The Underwriters propose to offer the Series Z Senior Notes directly to the
public at the initial public offering price set forth on the cover page of this
Prospectus Supplement, and may offer them to certain securities dealers at such
price less a concession not in excess of 0.450% of the principal amount per
Series Z Senior Note. The Underwriters may allow, and such dealers may reallow,
a concession not in excess of 0.250% of the principal amount per Series Z Senior
Note to certain brokers and dealers. After the Series Z Senior Notes are
released for sale to the public, the offering price and other selling terms may
from time to time be varied by the Underwriters.
It is expected that delivery of the Series Z Senior Notes will be made,
against payment for the Series Z Senior Notes, on or about February 17, 2004,
which will be the fourth Business Day following the date of pricing of the
Series Z Senior Notes. Under Rule 15c6-1 under the Securities Exchange Act of
1934, as amended, purchases or sales of securities in the secondary market
generally are required to settle within three Business Days (T+3), unless the
parties to any such transactions expressly agree otherwise. Accordingly,
purchasers of the Series Z Senior Notes who wish to trade the Series Z Senior
Notes on the date of this Prospectus Supplement will be required, because the
Series Z Senior Notes initially will settle within four Business Days (T+4), to
specify an alternate settlement cycle at the time of any such trade to prevent a
failed settlement. Purchasers of the Series Z Senior Notes who wish to trade on
the date of this Prospectus Supplement should consult their own legal advisors.
Prior to this offering, there has been no public market for the Series Z
Senior Notes. The Underwriters have advised the Company that they intend to make
a market in the Series Z Senior Notes. The Underwriters will have no obligation
to make a market in the Series Z Senior Notes, however, and may cease market
making activities, if commenced, at any time.
The Company has agreed to indemnify the Underwriters against certain
liabilities, including liabilities under the Securities Act of 1933, as amended.
The Company's expenses associated with the offer and sale of the Series Z
Senior Notes are estimated to be $275,000.
The Company has agreed with the Underwriters, that during the period 15
days from the date of the Underwriting Agreement, it will not sell, offer to
sell, grant any option for the sale of, or otherwise dispose of any Series Z
Senior Notes, any security convertible into, exchangeable into or exercisable
for the Series Z Senior Notes or any debt securities substantially similar to
the Series Z Senior Notes (except for the Series Z Senior Notes issued pursuant
to the Underwriting Agreement), without the prior written consent of Barclays
Capital Inc. and Wachovia Capital Markets, LLC. This agreement does not apply to
issuances of commercial paper or other debt securities with scheduled maturities
of less than one year.
S-9
In order to facilitate the offering of the Series Z Senior Notes, the
Underwriters may engage in transactions that stabilize, maintain or otherwise
affect the price of the Series Z Senior Notes. Specifically, the Underwriters
may over-allot in connection with the offering, creating short positions in the
Series Z Senior Notes for their own account. In addition, to cover
over-allotments or to stabilize the price of the Series Z Senior Notes, the
Underwriters may bid for, and purchase, Series Z Senior Notes in the open
market. The Underwriters may reclaim selling concessions allowed to an
Underwriter or dealer for distributing Series Z Senior Notes in the offering, if
the Underwriters repurchase previously distributed Series Z Senior Notes in
transactions to cover short positions, in stabilization transactions or
otherwise. Any of these activities may stabilize or maintain the market price of
the Series Z Senior Notes above independent market levels. The Underwriters are
not required to engage in these activities, and may end any of these activities
at any time.
In general, purchases of a security for the purpose of stabilization or to
reduce a short position could cause the price of the security to be higher than
it might be in the absence of such purchases. The imposition of a penalty bid
might also have an effect on the price of a security to the extent that it were
to discourage resales of the security.
Neither the Company nor the Underwriters make any representation or
prediction as to the direction or magnitude of any effect that the transactions
described above may have on the price of the Series Z Senior Notes. In addition,
neither the Company nor the Underwriters make any representation that the
Underwriters will engage in such transactions or that such transactions once
commenced will not be discontinued without notice.
The Underwriters and their affiliates engage in transactions with, and,
from time to time, have performed investment banking and/or commercial banking
services for, the Company and its affiliates in the ordinary course of business
and may do so in the future.
S-10
$200,000,000
(ALABAMA POWER LOGO)
SERIES Z 5.125% SENIOR NOTES DUE FEBRUARY 15, 2019
---------------------
PROSPECTUS SUPPLEMENT
FEBRUARY 10, 2004
---------------------
Joint Book-Running Managers
BARCLAYS CAPITAL WACHOVIA SECURITIES
---------------------
Co-Managers
BLAYLOCK & PARTNERS, L.P. THE WILLIAMS CAPITAL GROUP, L.P.